Credit Suisse upgrades Chinese stocks to 'overweight'

MILAN - Swiss bank Credit Suisse has upgraded Chinese stocks to 'overweight' following a recent commitment by the country's policymakers to support the economy.

"We think that Chinese equities offer attractive upside potential, with valuations still depressed. Efforts to contain the current COVID-19 outbreak are likely to have a more limited impact than in 2020 and 2021," the investment committee of the Swiss bank said in a report on Thursday.

Credit Suisse also lifted global stocks to 'tactical overweight' from 'neutral', recommending an increased exposure to U.S. stocks which it expects to be more resilient to any further escalation of the Russia-Ukraine conflict.