Nicholas Yeo, Abrdn’s head of Asia equities, notes that some headwinds are easing and says he is bullish on Chinese stocks, which have underperformed other markets for some time. Find out about our latest news, articles and more! Follow us While most of the world’s economies are in recession, China has strong potential for cyclical recovery. But despite the potential for a recovery, Chinese stocks are trading at a discount to their historical values ​​and relative to other global markets, particularly the US. Chinese stocks have been underperforming for some time since the collective boom launched in the summer of 2021. However, the headwinds have now dissipated as the government looks for other ways to stabilize and support the economy. CASES FOR OPTIMISM Nicholas Yeo, head of Asia equities at abrdn, notes that he sees plenty of reason to be relatively optimistic about the outlook for Chinese stocks, driven by more selective Covid restrictions, easing regulatory pressures and an accommodative monetary economy . and fiscal policy and relatively poor ratings. dear However, he warns that optimism must be tempered by adequate risk assessment, especially regarding the coronavirus and unresolved tensions in the real estate sector, with a selective approach that favors companies with attractive fundamentals, low exposure to macro risks and affordable valuations. ..