US investors could be forced to offload around $800 billion of Chinese equities “in an extreme scenario” of financial decoupling between the world’s two largest economies, Goldman Sachs Group Inc. estimates.
US institutional investors currently own about $250 billion worth of Chinese companies’ American Depositary Receipts, or 26% of the total market value, Goldman analysts including Kinger Lau wrote in a note dated Wednesday. Their exposure to Hong Kong stocks amounts to $522 billion and they own about 0.5% of China’s onshore equities. Together, that amounts to more than $800 billion worth of Chinese shares.