DBS Vickers Securities recommends overweighting Chinese stocks because the country's prospective policy changes will make Chinese equities be traded at a deep discount.
Thanawat Patchimkul, head of overseas business at DBS Vickers Securities, said the global economy in the first quarter is an "anchor in the storm" that has withstood an array of difficulties, including the Russia-Ukraine war, the Omicron variant, high energy prices, elevated inflation and rising interest rates.
However, the brokerage has an optimistic outlook for the global economy the rest of the year and suggests overweighting Chinese stocks as it expects them to become more attractive due to their laggard prices.
