Investing.com -- Citigroup (NYSE:C) strategists are advising the addition of Chinese consumer shares to portfolios. This recommendation comes in light of the Chinese government’s increased focus on consumption, as highlighted by Premier Li Qiang’s recent report at the National People’s Congress.
The Citigroup team, including strategist Pierre Lau, noted in a report that boosting domestic consumption has become the top priority for the Chinese government. This is a significant shift from the previous year when it was the third most important task.
Chinese sportswear company Anta has been added to Citigroup’s list of top H-share buys. The strategists also maintain a positive stance on sectors such as internet, technology, and transportation. This follows the National People’s Congress’s emphasis on technological development and supply-side reform.
Citigroup strategists have also highlighted the valuations of Chinese firms seen as alternatives to the United States’ top seven stocks.
These companies, which include BYD (SZ:002594), Alibaba (NYSE:BABA), Tencent, Meituan, JD.com, PDD, and Xiaomi (OTC:XIACF), appear to be undervalued.
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