Chinese stocks become attractive

CREDIT Suisse Group raised its recommendation on Chinese stocks to "overweight" after recent declines and on speculation the nation will introduce a fiscal stimulus package to boost growth.

Credit Suisse previously rated the MSCI China Index "underweight," according to the brokerage's research note released yesterday. The 101-company gauge comprises Hong Kong-listed stocks apart from three traded in Shanghai and three in Shenzhen. The measure has slumped 33 percent this year, valuing it at 13 times estimated earnings, down from this year's high of 28 times on March 5.