Citigroup Upgrades China to Overweight, Cuts South Korea to Neutral in EM Allocation Shift
Updated
Updated · South China Morning Post · Jul 20
Citigroup Upgrades China to Overweight, Cuts South Korea to Neutral in EM Allocation Shift
2 articles · Updated · South China Morning Post · Jul 20
Summary
Citi raised China to overweight in its emerging-market asset allocation on July 20, arguing it can benefit as the 2026 rally broadens beyond a narrow group of tech winners.
The bank said China and Mexico are positioned to capture capital rotating out of stretched technology valuations if the macro backdrop stays supportive and geopolitical risks ease.
South Korea was downgraded to neutral, ending an overweight stance held since mid-2025, because Citi sees heightened market volatility.
Taiwan kept its overweight rating, with Citi saying hardware supply chains still underpin global artificial-intelligence infrastructure as investors debate whether second-half gains will spread more widely.