China may be looking to ease regulations. Is it time to invest?

Time to start investing?

“Even after the rebound we still see valuation as attractive,” Jack Siu, chief investment officer of Greater China at Credit Suisse, told CNBC’s “Street Signs Asia” on Friday.

Prior to the recent bounce in China’s markets, valuations had been at close to 10-year lows, Siu said.

“It’s going to be volatile, but it’s time to start dipping our toes in,” he said

The stock markets have priced in sufficient risk premium on issues such as Covid in China and lingering concerns over the real estate market, he added.

Investable but be careful

Management consultant Richard Martin, on the other hand, warned that China is “investable but as a policy-controlled market.”

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Any market that falls around 30% in 10 days due to policy and geopolitical concerns — and then bounces back after the announcement of government support, is driven by policy and not the value or performance of its companies, said Martin, who is managing director at IMA Asia.

“You can invest. Just make sure you’ve understood the political/policy winds,” Martin said.

‘Tough road ahead’