Buy Chinese Stocks and Sell Big US Tech Brands, BofA’s Hartnett Says
The chorus of strategists turning bullish on Chinese stocks is getting louder by the day, with Bank of America Corp.’s Michael Hartnett the latest to recommend the nation’s equities as a top buy for 2023.
China’s economic reopening is set to boost equities as households have excess savings, strategists led by Hartnett wrote in a note dated Nov. 22, adding that the ending of Covid restrictions boosted stocks in the US and other countries. They also recommended selling US tech stocks among their top 10 trades for 2023.
Hartnett follows others on Wall Street who have recently turned positive on China. Citigroup Inc. said that Beijing’s pivot from Covid Zero, as well as supportive measures for the property sector, should lift company earnings, while Morgan Stanley raised its targets for the nation’s stock gauges.