A growing number of global financial institutions have turned more positive on Chinese equities, raising market ratings and increasing exposure to Chinese assets as they expect improving fundamentals and policy support to boost market performance in the second half of the year.
In recent weeks, international financial institutions, including Citi, UBS and Standard Chartered, have released updated market outlooks on China, with some upgrading their views on A-share performance and raising earnings expectations.
Citi recently upgraded China equities from "tactical neutral" to "overweight" within emerging market portfolios, reflecting its more positive view on Chinese assets. The institution said Chinese equities could benefit from a broader global market recovery and an improved world growth outlook.
Standard Chartered has maintained an "overweight" rating on Chinese stocks, citing valuation advantages compared with major global markets, as well as continued progress in artificial intelligence and industrial upgrading.
UBS Securities also said technology and AI-related investments would remain important themes for China's stock market in the second half of the year.
