But fund managers assessing Chinese stocks on a purely price-to-earnings basis argued that, even with the sharp correction in the domestic equity market and a stronger-than-forecast underlying economy, valuations are stretched to put it mildly.
"When you think about this market, you should look really look at valuations metric. The Shanghai Composite is still trading at around 20 times earnings -- that isn't a cheap market, that isn't a distressed valuation," Will Ballard, head of emerging market and Asia Pacific equities at Aviva Investors, told CNBC.
"If you look at Shenzen Composite, these are mid-cap companies that trade on 40-50 times earnings. ChiNext -- these are the tech and biotech firms on 80-90 times earnings – these are already stretched valuations."
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In light of this, Ballard said Aviva was maintaining its substantial and long-standing underweight allocation to China, but he said there was real potential on a longer-term basis.
"We are mindful of the disconnect between what remain bubble-like valuations of some of the domestic equities, and the more attractive valuations found in Chinese companies listed in Hong Kong or offshore," he added.
Chinese equities rallied on Friday after reports that state banks lent around 1.3 trillion yuan ($209 billion) to the country's margin finance agency, in the latest step to prevent a market freefall.
China's benchmark Shanghai Composite closed up 3.5 percent, while the CSI300 index rocketed nearly 4 percent and the Shenzhen Composite ended 5 percent higher.