beijing more and more international investment analysts say its time to buy mainland chinese stocks ahead of expected government support for growth on top of the pandemics drag on the economy heightened regulatory uncertainty since last summer has generally kept foreign investors cautious on chinese stocks but thats starting to change for some investment firms in the last several months in its global stock strategy report for 2022 credit suisse upgraded china to overweight reversing a downgrade of the stocks about 12 months ago monetary policy is being eased in china while elsewhere it is being tightened its global strategist andrew garthwaite and his team wrote in the late january report economic momentum is turning up one of the early positive turns on mainland chinese stocks came from blackrock investment institute in late september as 2022 got underway other firms also made similar calls while others remain neutral on the political front credit suisse expects regulatory uncertainty to subside after a national parliamentary meeting in march and remain muted at least until after the ruling chinese communist partys 20th national congress in the fourth quarter chinese president xi jinping is widely expected to take on an unprecedented third term at the meeting which occurs every five years to select top government leaders during a december economic planning meeting for 2022 chinese officials emphasized the need for stability financial factors such as how much the stocks have fallen compared to their potential ability to deliver earnings also contribute to analysts positive turn on chinese stocks bernstein china is uninvestable no more in january bernstein released a 172page report titled chinese equities uninvestable no more we believe there is a case to add back china exposure to global portfolios due to six key reasons analysts at the investment research firm said they pointed to expectations for growth in new financing easier monetary policy and more attractive stock valuations relative to the rest of the world other factors included a rare opportunity to pick stocks growing foreign inflows and increased earnings investors are too bearish about china stocks hsbc analysts wrote in a feb 7 report that affirmed its call in october to upgrade chinese stocks to overweight yes china is struggling with growth and a stronger usd is not good news for chinas stock markets the analysts said but thats now wellknown and is priced in even good blue chip stocks are now trading at attractive valuations the banks analysts forecast 92 gains this year for the shanghai composite and 156 for the shenzhen component index goldman ashares are now more investable goldman sachs forecasts 16 in gains for the msci china index this year as valuations remain below the wall street banks target of a 145 pricetoearnings ratio its chief china equity strategist kinger lau said in a jan 23 report on sunday lau and his team released an 89page report about why china a shares have become more investable for global investors their reasoning for investment in the worlds second largest stock market is based largely on greater accessibility for foreign investors and underallocation to the share class so far in late october ubs announced it was upgrading chinese stocks to overweight up two notches from an underweight call in the summer of 2020 in another sign of the firms optimism the emerging markets strategy team said in january its highestconviction stock ideas include many chinese internet names like alibaba that have been the target of beijings new regulation on alleged monopolistic practices and data security not everyone is a china bull however not all international investment firms are as optimistic morgan stanleys asia emerging markets stock strategy team is neutral on mainland china as are bank of america and jp morgan asset management during past years of stimulus china hasnt always seen a bull market winnie wu china equity strategist bofa securities said in a phone interview monday while there are investment opportunities within certain sectors she expects corporate earnings growth across china to decelerate wu pointed out that in 2016 despite expectations of stimulus stocks only began to climb after the second quarter the shanghai composite closed 123 lower that year