CHINA'S stocks, the worst performers among the world's biggest markets this year, are close to the level where investors should consider buying, Shenyin and Wanguo Securities Co said yesterday.
The Shanghai Composite Index, which tracks shares on the bigger of China's two exchanges, needs to drop 5 percent from yesterday's close to become "attractive," said Chen Li, a strategist at the Shanghai-based brokerage.
The index tumbled 48 percent this year to June. That has left the gauge valued at 21 times earnings, the lowest since March 2006, according to Bloomberg data.
"Stocks are only fairly valued now," Chen said in a phone interview. "They will be attractive once the Shanghai benchmark index is between 2,500 and 2,600, compared with Monday's close of 2,736.10."
The national pension fund has voted Shenyin and Wanguo the country's best brokerage for research.