China Impact of Japan earthquake on China earnings should be limited- Goldman Sachs

No meaningful changes required to earnings forecasts Over the past week since the earthquake hit northeast Japan, our China research team has been in communication with our coverage universe to assess potential earnings impacts. Based on currently available information, we believe Chinese equity earnings are not likely to see significant revisions, because: 1) our Economics team believes China's top-down growth impact is limited as potentially lower oil/commodity prices near term may outweigh negatives from lower exports and supply disruptions from imports; 2) Equity index weightings (especially Hshares) are skewed towards unaffected domestic-facing large-cap sectors like financials and telecom, while slightly more negatively affected sectors like auto or tech are quite small in China; 3) Intra-sector bottom up, only select names may suffer from supply chain issues or Japan-export dependency, while companies may enjoy product substitution benefits at least near-term, or greater rebuilding demand, as offsetting factors. Whats the Worst Case Scenario for Japan.. What Will We Do ??