Goldman Sachs says equity investors are skeptical of Chinese companies' rapid overseas expansion and want to see profitable growth. Sluggish domestic consumer demand has pushed firms such as electric car brands abroad, and Geely recently announced plans to enter Canada next year. A Goldman report dated Sept. 14 projects that Chinese companies' overseas market share could reach 31% by 2035, up from about 18%. Chen says investors need to be convinced expansion will not turn into 'involution', a price-cutting race, while geopolitics and market access restrictions also weigh on stocks. She adds that investors are ruthless when leaders lose share, as a 10% to 15% loss could shrink market capitalization by 50% to 80%.
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