Bank of America recommends buying Chinese stocks.

Michael Hartnett, a strategic expert at Bank of America Corp, recommended in a research note released today, Friday, to buy Chinese stocks in the short term, anticipating an announcement from authorities about a series of new financial stimulus measures.

In this context, the analyst stated that asset allocations to China are expected to rise with increased economic growth expectations and rising bond yields; it is likely that the Chinese government will adopt stimulus measures worth up to one trillion yuan (approximately $283 billion) at a press conference scheduled for Saturday, according to investors and analysts surveyed by Bloomberg.

Moreover, the strategic expert emphasized the importance of buying any dips in China, pointing out that policymakers have hinted that capital markets will be used aggressively to boost domestic demand.

It is worth noting in this regard that Bank of America has indicated that investors poured $39.1 billion into Chinese equity funds in the week ending October 9.