Asset management giant Abrdn Plc said now is a good time to buy Chinese stocks. The company has joined a growing number of funds that are optimistic about Chinese stocks. Rene Buehlmann, Asia Pacific CEO of the fund, said, “I really think that Chinese stocks are not highly valued. To say the least, investors should return to China.” The fund manages US$46.5 billion in Asian assets.

Mainland China's stock market has rebounded over the past month. The Hong Kong-listed mainland China stock index rose 29% in November, the biggest monthly increase since 2003, following a cumulative decline of 40% from January to October.

As the recovery gains momentum, investors around the world are becoming more optimistic. Goldman Sachs said last month that the Chinese stock market will outperform the rest of the world in 2023. Bank of America, on the other hand, pointed out that it has taken a tactical positive attitude towards China, while J.P. Morgan said that the market crash at the end of October was a buying opportunity.

Buehlmann said last week that the best long-term potential appears to be in areas such as China's consumer sector, healthcare, wealth-related financial services, renewable energy, and digital innovation.