Chinese onshore equities upgraded to overweight by BCA Research amid promising sectors and improved economic situation.
Chinese equity markets face underperformance amid challenges like slow economic growth, deteriorating US-China relations, and steep valuation declines, but promising sectors like fixed asset investments, industrial production, and services may offer opportunities. Analysts at BCA Research upgraded Chinese onshore equities to overweight from neutral, suggesting that Chinese stocks could insulate fund managers from deep losses as global risk assets face fresh dangers. Global hedge funds have added holdings in promising Chinese stocks, and the economic situation in China is improving, leading to better sentiments in the equity market. Wall Street analysts have identified top-performing Chinese stocks like H World Group (NASDAQ:HTHT) as potential outperformers heading into year-end.