From South China Morning Post: 2024-06-12 18:00:16

Societe Generale turns positive on Chinese stocks, citing policy support and earnings improvement. Recommendation raised to overweight with focus on offshore large-caps with solid earnings and stable dividends. Earnings green shoots emerging in improving risk-reward scenario for China equity investing amid recent market pullback and state-led buying.

MSCI China Index rebounds 32% from January low, boosted by state support for property market. First-quarter Chinese corporate earnings below consensus but showing strength on sequential basis. Pace of earnings downgrades slowing, revenue growth projected at 4%. Societe Generale prefers offshore stocks for valuation and dividend yield advantages.

Societe Generale advises sticking to big-cap Chinese stocks like Tencent, PDD, and Ping An for earnings recovery plays. French bank lowers South Korea market rating to neutral, raises Malaysia to neutral, maintains positions on India, Indonesia, and Thailand. Betting on China’s rebound, global investors show more confidence in the world’s second-biggest stock market.



Read more at South China Morning Post: Societe Generale joins UBS, Mark Mobius in turning bullish on Chinese stocks