On a day World Bank slashed China's growth forecast from 4.3 percent to 2.7 percent, Credit Suisse's Co-Head of Equity Strategy for Asia Pacific Dan Fineman said even while developed markets head towards a slowdown, China would March towards growth despite the latest Covid surge.

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“China is still the best story. The valuations are actually quite cheap, even after this great rally they had in November, the multiples are still at a deep discount relative to the rest of the region and relative to global equities. Our clients are still underweight on China, but they are interested in playing into this cyclical recovery,” Fineman told CNBC-TV18 on Tuesday.

World Bank cited Covid lockdowns across cities and weaknesses in the real state sector to pare China's growth forecast. It also revised its forecast for next year from 8.1 percent to 4.3 percent.

Also Read: Oil climbs over 1% but uncertainty on China COVID surge caps gains

Fineman said everyone is hoping the outbreak is as mild as possible. "They have lifted the zero COVID restrictions much quicker than we had anticipated, but it is not leading to a quick normalisation of consumption behaviour,” he said.

Speaking about the US markets, Fineman said a slowdown in the US could benefit Asia, adding that a weaker dollar is an important channel via which emerging markets benefit when the US market slows down.

According to him, the economic downturn in Asia would not be severe and Indonesia, Thailand and the Philippines would be preferred markets.

Also Read: India growing faster than official data shows, says Credit Suisse

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