Herald van der Linde, HSBC’s Herald van der Linde believes there are opportunities for Chinese stocks to be bought “at reasonable valuations”.

Van der Linde from HSBC’s Asia-Pacific equity strategy told CNBC’s Street Signs Asia on Tuesday that “we believe investors should buy, actually, Chinese stock stocks.” He said that HSBC currently has Chinese stocks “overweight”.

“Good stocks have been thrown out of, like they say, the baby’s been thrown away with the … bathwater,” the strategist said, adding that these shares are now trading at “very low multiples.”

Van der Linde stated that the Chinese market is also more affordable than those in India and the U.S.

Many factors have caused investors to be cautious about Chinese stocks during the past year, including Beijing’s continuing regulatory crackdown and fears over contagion from debt-laden developers. China Evergrande Group

Major Indian and U.S. indexes have risen to records over the past weeks. However, China’s CSI 300 Index, which monitors the biggest mainland stocks, was down nearly 5% as of Tuesday’s close. Hong Kong shares are held by tech-giants like Alibaba. Alibaba TencentThe benchmark is listed Hang Seng indexMore than 4% has fallen in the past year.

“Most people have a heavy underweight.” [on China]He stated that there were opportunities for investors to acquire these stocks at affordable valuations. It’s something that everyone should look at.

Van der Linde stated that Southeast Asia’s markets look “pretty good”, as the Covid situation appears to be improving.

He stated that “a lot of people fled those markets.” “They have gone out. They are overweight. They didn’t want the exposure.”

The strategist stated that there are many people who could buy more in China and ASEAN. However, ASEAN’s valuations are very low. That’s why you want to go.