Investors encouraged to diversify into Chinese stocks

Fund managers are recommending investments in Chinese equities as a way to diversify portfolios in the second half of the year, following a market rebound supported by several positive factors.

- NUNTAWUN POLKUAMDEE

Chinese stock markets have rebounded this year — the MSCI China Index was up 10% as of April 30 and the Shanghai Composite Index gained 0.87% as of early May.

These gains are attributed to easing US-China trade tensions, government stimulus measures, and strong performances by technology stocks. Stocks related to artificial intelligence are also regaining momentum, driven by improved earnings, said analysts.

Chinese stock valuations remain attractive, with the MSCI China Index still trading below its five-year average price-to-earnings (P/E) ratio.

Khomsan Phalanusondhi, managing director of Asia Plus Fund Management, said these factors have lifted investor confidence and renewed speculative interest in the Chinese market.