Stock losses are opportunities for investors, says Goldman

Chinese stock declines spurred by tighter lending restrictions may be "short-lived" and offer investors buying opportunities in the world's fastest growing economy, Goldman Sachs Group Inc said.

The CSI 300 Index, a measure of 300 stocks traded on the two mainland exchanges in Shanghai and Shenzhen, slumped 3.2 percent on Wednesday, the most in seven weeks, after the People's Bank of China unexpectedly raised the proportion of deposits that banks must set aside as reserves.

The move is "prudent" and can reduce the risks of China developing a "full-blown asset bubble", Goldman Sachs analysts Thomas Deng and Kinger Lau wrote in a report yesterday.