SINGAPORE, Feb 18 (Reuters) - The thesis for investing

in China is improving underpinned by a combination of market

performance and tailwinds from DeepSeek's AI breakthrough to

better-than-expected U.S. relations, according to analysts at

Bank of America Securities.

Under the sub-heading "From 'tradable' to 'investable'" the

investment bank's China equity analysts noted that long-term

reforms such as rising dividend payments and encouraging

insurers to invest could back up recent market gains.

"China market outperformed in 2024, but many investors we

spoke to still regarded China as a "trading market" - fast money

comes and goes to play the trading bounces, whereas global

long-term capital remains unconvinced and little involved," they

said.

"Encouragingly, we think the fundamental investment thesis

for China has been improving."