Chinese equities have become the most popular among global investors due to their proven high returns of 20% year-to-date amid recent monetary easing by Beijing, according to Tisco Wealth Asset Management.
"Just in this year's first quarter alone, the Chinese government cut its policy rate twice," managing director Teeranat Rujimethapass said.
He said many economic stimulus packages had also been introduced that had been successful in boosting the national economy by 6-7% annually, the highest growth rate in the world.
The government measures are focused on financial institutions as the main economic driver — for example, they can boost loan growth by relaxing rules for home loans, which would in turn bolster the real estate market.
"Even though China cut the rate twice in only three months, it's still at 4%," Mr Teeranat said.
"That means they can cut it a few more times if needed."
As a result of the economic stimulus packages, the Chinese bourses — Shanghai and Shenzhen — have risen by about 70% over the past 12 months and 20% year-to-date.
The Chinese government recently also revoked the investment ceiling for Chinese investors wanting to invest in the Hong Kong Stock Exchange, and that bourse has continued to gain rapidly this month.
"It means the huge investment demand from China can flow in [to Hong Kong] with no limit," Mr Teeranat said. "The huge demand is a result of its 30% cheaper prices than those trading on China's bourses."
He said the many foreign investment funds investing in China's stock markets were likely to generate high returns in line with the gain in those bourses, as many trigger funds could be closed before their maturity date.
This month, three equity trigger funds of Tisco Wealth Asset Management that invested in China could close before their maturity date.
However, it believes China's stock markets will continue to gain this year thanks to low public debt and strong local consumption.
"The price-to-earnings ratios of the Chinese markets remain relatively low at about 10," Mr Teeranat said.
He said East Asia in general was attractive, with returns of 16% over the past year.
But Mr Teeranat said high-yield bonds, the top active product last year, were not recommended this year due to concerns of a currency war that could affect returns.
He recommends investors avoid the bond market out of concern over a currency exchange war among leading countries that could have a spillover effect to other countries.
Fluctuations in major currency exchange would affect bond yields, Mr Teeranat added.