G Sachs downgraded ChinaSoft International from 'Neutral' to 'Sell' due to concerns over moderate growth in China's market, increasing competition, rising recruitment costs for AI engineers, and a sector-wide de-rating of the software industry amid fears of AI disruption. The firm expects earnings growth to have bottomed in 2025 before gradually recovering, leading to significant cuts in net profit forecasts for 2026 and 2027.
