China's yuan-denominated stocks may have more "short-term catalysts" than mainland equities listed in Hong Kong because of government measures to limit the oversupply of initial public offerings, relax regulations for foreign investors and push State-owned enterprises to boost dividend payout ratios, according to Lion Global Investors Ltd.

Lion Global, which was granted a Qualified Foreign Institutional Investor license in May, is also positive on both A and H shares because equity valuations are at "trough" levels, while the government will take measures to prevent the economic slowdown from deepening, Simon Flood, Singapore-based chief investment officer, said in an e-mailed interview.

Agencies - China Daily