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CICC Says Global Banks Are Too Bullish on China’s Stocks

China’s biggest investment bank is turning “cautious” on the country’s stocks, just as six of its overseas rivals and the manager of the largest mutual fund say it’s time to buy.

China International Capital Corp. predicts slowing economic and earnings growth will limit equity gains after the Hang Seng China Enterprises Index rose 6.6 percent this year, the best advance among major Asian indexes. The top-ranked provider of China research in Asiamoney’s survey recommends “defensive” companies including drugmakers and consumer staples producers.