Chinese consumer stocks to buy even if the overall market rally fades

Almost as quickly as the China stock rally happened, several investment analysts have been swift to point out its weaknesses. “China’s recent rally was not justified by fundamentals,” Citi’s emerging markets strategists said in a note Friday that downgraded China, while upgrading India. The firm is overweight Chinese internet, industrials and technology, but neutral on autos and consumer stocks broadly. Among the sectors, consumer discretionary stocks have the highest expected earnings per share growth this year of about 29%, the Citi report said. After a tepid start to 2024, the MSCI China Index is beating not only emerging markets but…