U.S. Wall Street Union Bank Ltd

Although foreign investors have been generally cautious about China's stock market since last summer, some investment banks have begun to change their attitudes in the past few months.
In its 2022 global equity strategy report, Credit Suisse upgraded China's stock rating to "overweight". Andrew garthwaite, its global strategist, and his team wrote in a report in late January:
"China's monetary policy is easing, while other countries are tightening monetary policy. China's economic momentum is improving."
01
Bernstein: the attractiveness of China's stock market has increased
In January this year, Bernstein, a Wall Street investment bank, released a 172 page report entitled "China's stock market: increased attractiveness".
"We believe there are six key reasons to increase China's exposure to global portfolios," Bernstein analysts said
They pointed out that the market expects the growth of new social financing in China, looser monetary policy and more attractive stock valuation compared with the rest of the world. Other factors include rare stock selection opportunities, foreign capital inflows and increasing returns.
02
HSBC: investors are too pessimistic about China's stock market
Since the Spring Festival holiday, the Shanghai Composite Index has risen by 2%. Previously, wind information showed that the Shanghai Composite Index fell 7.65% in January, the worst month for the index since October 2018.
"Investors are too pessimistic about China's stock market," HSBC analysts wrote in a report on February 7 The report reiterated the call to raise the rating of China's stock market to "overweight" in October last year.
"Yes, China is trying to cope with economic growth. A stronger dollar is not good news for China's stock market, but it is now well known and has been included in the stock price," the analysts said. Even some good blue chips have attractive valuations. "
Analysts at the bank expect the Shanghai Composite Index to rise 9.2% and the Shenzhen Component Index to rise 15.6% this year.
03
Goldman Sachs: A shares are now "more worthy of investment"
In a report on January 23, Roger Lau, chief China equity strategist at Goldman Sachs, said that the MSCI China index is expected to rise 16% this year because its valuation is still lower than the 14.5 P / E target of Wall Street investment banks.
On Sunday, ginger Lau and his team released an 89 page report on "why China's a shares have become more worthy of investment by global investors". Their reasons for investing in China, the world's second-largest stock market, are mainly based on the easier access of foreign investors to China's stock market and the insufficient allocation of stock categories in China so far.
In February 2020, when the epidemic was at its worst, Goldman Sachs increased its holdings of a shares.
04
UBS: raised to "overweight"
In late October last year, UBS announced that it would raise the rating of Chinese stocks to "overweight", two levels higher than that in the summer of 2020.
Another sign of the bank's optimism about China's stock market was that its emerging markets strategy team said in January that its most confident stock holding concept included many Chinese Internet companies such as Alibaba.