Goldman Sachs Futhink: AI, Anti-Involution, and Going Global Are Key Drivers of Profit Growth Over the Next Five Years

How AI Technology Specifically Affects the Profitability of Public Companies

Southern Finance, 21st Century Business Herald Reporter Zhang Weize, Intern Feng Yingyi, Hong Kong Report

Goldman Sachs China Equity Strategist Fu Si stated at the “Bay Area Financial Experts Conference” that the profit growth rate of Chinese listed companies is expected to reach double digits over the next five years. Artificial intelligence (AI), the “anti-involution” trend, and companies going global will be the three core structural factors driving this growth.

On March 11, the “Bay Area Financial Experts Conference” hosted by Southern Finance Media Group was held in Hong Kong. The event, themed “Vision 2026—Interpretation of the Two Sessions Policies and Spring Investment Outlook,” gathered chief economists and market strategists from leading financial institutions for a high-level, in-depth dialogue.

In her speech, Fu Si elaborated on these three key factors that can sustainably improve the profitability of listed companies.

First, artificial intelligence (AI) is regarded as the primary driving force. She pointed out that AI’s impact will be reflected in two aspects: first, investment opportunities brought by upstream capital expenditures; second, significant improvements in labor productivity due to widespread downstream applications.

Second, the “anti-involution” trend will play an important role. Fu Si believes this trend will gradually alleviate long-standing excessive competition issues in some industries, especially in upstream sectors, thereby pushing profit margins back to normal levels.

Finally, companies going global constitute the third major growth pillar. She believes that as Chinese companies accelerate their globalization, overseas markets will provide continuous and substantial new opportunities for profit growth for listed companies.