According to CNBC, a growing number of Wall Street investment banks say it is time to buy Chinese stocks because they expect the Chinese government to support economic growth.

While foreign investors have been generally cautious about the Chinese stock market since last summer, some investment banks have begun to change their attitudes in the past few months.

Credit Suisse upgraded Chinese stocks to "overweight" in its 2022 Global Equity Strategy report.Its global strategist Andrew Garthwaite and his team wrote in a report in late January:

China's monetary policy is loosening, while other countries are tightening monetary policy. China's economic momentum is improving. "

Bernstein: the attractiveness of Chinese stock market increases

In January, Bernstein, a Wall Street bank, released a 172-page report entitled "China's Stock Market: more attractive".

Bernstein analysts said: "We thinkFor six key reasonsThere is reason to increase China.Exposure to global portfolios."

They point out that the market expects growth in new social financing in China, looser monetary policy and more attractive equity valuations compared with the rest of the world. Other factors include rare stock selection opportunities, foreign capital inflows and rising returns.

HSBC: investors are too pessimistic about China's stock market

The Shanghai Composite index has risen 2 per cent since the Lunar New year holiday. Earlier, the shanghai composite index fell 7.65% in January, its worst month since October 2018, according to Wind.

"investors are too pessimistic about the Chinese stock market," HSBC analysts wrote in a report on February 7. The report reiterated the call for China's stock market to be upgraded to "overweight" last October.

"Yes, China is trying to cope with economic growth," the analysts said.The strength of the dollar is not good news for the Chinese stock market, but this is now well known and has been included in the stock price. Even for some good blue-chip stocks, valuations are attractive."

Analysts at the bank expect the Shanghai Composite Index to rise 9.2 per cent this year and the Shenzhen Composite Index to rise 15.6 per cent.

Goldman Sachs Group: a-shares are now "more worth investing".

Kinger Lau, chief china equity strategist at Goldman Sachs Group, said in a report on Jan. 23 that the MSCI china index is expected to rise 16% this year because its valuation is still below the price-to-earnings target of wall street banks.

On Sunday, Kinger Lau and his team released an 89-page report on why Chinese A-shares have become more worthy of global investors. Their reasons for investing in China, the second largest stock market in the worldThis is mainly based on the fact that it is easier for foreign investors to enter the Chinese stock market and that China has so far underallocated stock classes.

In February 2020, at the height of the epidemic, Goldman Sachs Group increased his A-share holdings.

UBS: from "reducing" to "increasing"

In late October, UBS raised its rating on Chinese stocks to "overweight", two notches higher than it was in the summer of 2020.

In another sign of the bank's optimism about the Chinese stock market, its emerging market strategy team said in JanuaryIts most confident stock holding ideas include many Chinese Internet companies, such as BABA.