(Bloomberg) -- Citigroup Inc. has joined a growing roster of market participants from Paris to New York who have become more confident on the outlook for China equities amid cheap valuations and policy easing.

“Valuations look relatively attractive and policy is easing when most of the world is tightening,” strategists including Robert Buckland wrote in a note, which upgraded Chinese stocks to overweight. “While Covid risks continue to worry us, reopening and policy support could make China a more idiosyncratic story moving forward.”

Bullish calls on Chinese stocks have gotten louder as the CSI 300 benchmark has been outperforming global equities in recent months. The index is poised to enter a bull market, which is a sea change from earlier this year when the gauge slid into a bear market as China kept to its strict Covid curbs. 

The rebound in China equities has been swift with the CSI 300 Index rising about 17% from a low in April, fueled by an easing of lockdowns in key cities and the dialing back of a crackdown on private enterprise. 

Chinese stocks with buy ratings at Citigroup include Hong Kong-listed BYD Co., Alibaba Group Holding Ltd. and LONGi Green Energy Technology Co.

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