Citigroup's report states that recent policy changes on the mainland have led to a reversal of sentiment among Chinese investors, stronger than expected. Investors who have had a negative view on China are now actively reducing their previously negative positions. So far, the bank has seen the biggest rebound coming from industries and stocks that are not 'crowded trades'. As this trend may continue in the short term, the bank has selected a list of the least crowded and underinvested stocks in China, all of which are rated as 'buy'.

Stocks:

Hong Kong Stocks and Chinese Concept Stocks

Mengniu Dairy (02319.HK)

China Longyuan Power (00916.HK)

China Resources Beer (00291.HK)

Guangzhou Automobile Group (02238.HK)

Chow Tai Fook Jewellery (01929.HK)

iqiyi (IQ.US)

tsingtao brewery (00168.HK)

Nongfu Spring (09633.HK)

xinyi solar (00968.HK)

wuxi bio (02269.HK)

weigao (01066.HK)

haitong sec (06837.HK)

ali health (00241.HK)

China Singyes Solar Technologies Holdings Limited (00881.HK)

China Railway Group Limited (00390.HK)

Shanghai Pharmaceuticals Holding Co., Ltd. (02607.HK)

Beijing Enterprises Holdings Limited (00392.HK)

China Overseas (00688.HK)

CStone Pharmaceuticals (01093.HK)

China Galaxy Securities Co., Ltd. (06881.HK)

A-shares

Yunnan Energy New Material (002812.SZ)

Anjoy Foods Group (603345.SH)

Ganfenglithium (002460.SZ)

Hengrui Medicine (600276.SH)

Wuxi Apptec (603259.SH)

Guizhou Maotai (600519.SH)

China Vanke Co., Ltd. (000002.SZ)

Zhejiang Sanhua Intelligent Controls (002050.SZ)

Shanxi Xinghuacun Fen Wine Factory (600809.SH)

Zhejiang Dahua Technology (002236.SZ)

East Money Information (300059.SZ)

Gotion High-Tech (002074.SZ)

Luzhou Laojiao (000568.SZ)

iFlytek Co.,Ltd. (002230.SZ)

Hangzhou First Applied Material (603806.SH)

Hengsheng Electronics (600570.SH)

Wuliangye Yibin (000858.SZ)

Poly Developments and Holdings Group (600048.SH)

Livzon Pharmaceutical Group Inc. (000513.SZ)

Huadong Medicine (000963.SZ)

Accelink Technologies (002281.SZ)

Shanghai Electric Group (601727.SH)

Zhejiang Huayou Cobalt (603799.SH)

Beijing Tongrentang (600085.SH)