Oct. 11 (Bloomberg) -- Chinese stocks may be near the “bottom” and may outperform their emerging-market peers at current levels, according to Citigroup Inc.
Both valuation and so-called upside/downside ratio, a measure of market momentum, suggest that Chinese equities are near their lows, Citigroup analysts Minggao Shen and Ben Wei wrote in a report today. The market should rebound as concerns over a global recession, a European Union default and a so- called hard landing in China prove to be “over-done,” the analysts said.
Investors should be “overweight” financial companies and cyclical industries amid the rebound, the analysts said.
To contact the editor responsible for this story: Shiyin Chen at firstname.lastname@example.org