China was never before this cheap in comparison to India, says HSBC

The global brokerage joins slew of others such as UBS, Nomura and Jefferies to increase its weight on China citing easing of headwinds and attractive valuations

China has never been this cheap versus India, global brokerage HSBC has said, while raising its weighting on the world’s second-biggest market from ‘neutral’ to ‘overweight’. HSBC joins slew of other brokerages such as UBS, Nomura and Jefferies to increase its weight on China citing easing of headwinds and attractive valuations.

“On a price-to-earnings (P/E) basis, China is not expensive. It is trading at a 12-month forward P/E of 12.9 times, down from as high as 17 times at the beginning of the year. China has never been this cheap versus India-–FTSE India is now trading at a premium of