Goldman Sachs predicts that the blowout surge in China's stock market still has a ways to go, with another 15% to 20% upside ahead. It's a standout call for a market that has already impressed in recent weeks.

Goldman Sachs has upgraded its expectations for Chinese stocks, telling investors that shares could go a further 20 per cent higher after a historic rally following Beijing’s pledge to do more to stimulate the economy.

The recent two-week rally sparked by the unveiling of the People’s Bank of China’s stimulus package has already seen one of the sharpest increases in Chinese equities in history. Goldman Sachs’ analysts said the rally could now have more legs.