Economic Watch: Overseas investors add A-share investment on China stimulus measures(2)

More detailed and forceful stimulus measures will help China stabilize the economy and boost investor confidence, said Kinger Lau, chief China strategist for Goldman Sachs Research.

The policy signals, current valuation levels, and continued capital market reforms are the three major factors behind the recent rebound of the A-shares, Lau noted.

Wang Tao, an economist from UBS, said China's moves to coordinate epidemic control and social and economic development acted as a stabilizer for the world, particularly the emerging markets.

The valuation of the A-share market may have hit bottom given the sustained strong government policy support since May and relatively loose liquidity conditions, said a recent research note released by UBS.

Several well-known institutions have recently expressed their optimism about the medium and long-term prospects of the Chinese stock market.

The A-share market is still attractive to global investors in the long term, considering the economic recovery on policy support while the epidemic waned, as well as the stabilizing Renminbi exchange rate and relatively low valuations compared with overseas markets, said Citibank analysts.