BofA Strategists Turn Bullish on China. There Are Some Caveats.

After two years of caution, enough good news has emerged that one relatively bearish Asian equity strategist has turned bullish on China—tactically, for now.

The turn comes as Chinese stocks have been bolstered in recent weeks by baby steps toward a pivot away from the Zero-Covid policy that has strangled its economy and contributed to frustration on the ground. There are also expectations of more stimulus after Chinese President Xi Jinping cemented power for a third term. A meeting between Xi and President Joe Biden paved the way for reopening more channels of communication to avoid turning their increasing competition into a global conflict.

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