According to CNBC, some foreign investors were generally cautious about Chinese stocks, but this has changed in recent months.
BlackRock took the lead in turning to positive sentiment towards A-Shares at the end of September last year. With the advent of 2022, many companies have expressed similar views. More and more international investment banks believe that “now is the time to buy A-share stocks.”
At the end of October last year, UBS group announced to upgrade the rating of Chinese stocks to “overweight”, realizing the “two consecutive jumps” from the “underweight” rating in the summer of 2020.
after digesting the bad, how much profit is there
In the recently released 2022 global stock strategy report, Credit Suisse upgraded the rating of Chinese stocks back to “overweight” after nearly 12 months.
Andrew garthwaite, the bank’s global strategist, and his team wrote in the report, “monetary policy is tightening in many parts of the world, while China is relatively loose and the economic momentum is improving.”
Investment bank Bernstein released a 172 page report entitled “Chinese stocks are beginning to be worth investing” in January this year. “Among the six key reasons for the increase in our global portfolio, China is worth re investing.”
These six reasons include the expectation of new financing expansion, looser monetary policy and more attractive stock valuation, once-in-a-lifetime stock selection opportunities, growing foreign capital inflows and considerable corporate profits.
Analysts at HSBC also pointed out in a report on February 7 that overseas investors were too bearish on A-Shares and reiterated their position of “increasing their holdings” in China’s stock market in October last year. Analysts said: “the strengthening of the US dollar seems to be bad news for China’s stock market, which is now well known. But A-Shares have long digested this element.”
HSBC analysts expect the Shanghai index to rise 9.2% this year, while the Shenzhen Component Index will rise 15.6%.
Goldman Sachs: A shares now have more investment value
In a report on January 23, ginger Lau, chief China equity strategist at Goldman Sachs, said that since the valuation is still lower than Wall Street’s P / E target of 14.5, the MSCI China index is expected to rise 16% this year.
The 89 page report is entitled “why China’s A-Shares have become more valuable to global investors”, mainly because it is easier for foreign investors to invest in A-Shares and the long-standing lack of quota proportion of such assets.
Goldman Sachs upgraded its A-share rating to “overweight” as early as February 2020.
Founder Securities Co.Ltd(601901) : the current adjustment of A-share market is coming to an end
Founder Securities Co.Ltd(601901) : A shares may have bottomed out periodically. What do you buy?
China Securities Co.Ltd(601066) : the short-term counterattack is not finished, and the medium-term reversal needs to wait
