Citi’s stock analysts reshuffled their top plays in China after downgraded their ratings more than the number of upgrades in the most recent earnings season. “China’s economic recovery looks to be slower than market expectations,” the strategists said in a September 2 report. “In our view, the economy will only improve materially if there is substantial and sustained policy easing on COVID lockdown measures, outlook uncertain.” “Monetary support is constrained by concerns about excessive Rmb devaluation and fiscal measures constrained by lower property sales,” they said. Investment banks have repeatedly cut their forecasts for China’s gross domestic product this year as strict Covid control measures have curbed business. In late July, Beijing signaled that no large-scale stimulus measures were being taken and its Covid policy would remain unchanged. Against this economic backdrop, Citi analysts downgraded 12 Chinese stocks and upgraded 8 stocks. Here are three stocks from their updated list of the top mainland-traded Hong Kong and Chinese stocks to buy. PetroChina Price Target: HK$4.40 (56 cents), up nearly 28% from Thursday’s closing price. The state-owned energy giant is Citi’s pick for the second half of the year, analysts said, “as it is a direct beneficiary of high oil prices”. They upgraded the stock from “neutral” to “buy”, with a new target price of HK$4.40. Analysts expect PetroChina to control losses in the second half as there are better market drivers: higher energy prices in winter and lower input costs from Russian gas. Meituan Price Target: HK$235, up 37% from Thursday’s closing price. Citi analysts added the internet name to their list of top stocks in China, replacing NetEase. Meituan operates China’s version of Yelp, as well as food delivery, ride-hailing and other consumer services. The company has “proven a reliable local services platform partner for merchants and trusted lifestyle apps for consumers,” the analysts said. They said the stock is likewise for “robust execution, rapid adaptation to challenging environments, and successful rollout of new product offerings.” Haier Smart Home Target price: 36 Chinese yuan ($5), up 39% from Thursday’s close. Although Citi analysts prefer H shares in Hong Kong to A shares in the mainland, Shanghai-traded Haier Smart Home made the list of top stocks to buy. “Growth is primarily driven by [average selling price] “More on improving the premium product mix and expanding overseas,” the analysts said, adding that falling raw material prices should boost profits. Haier grew 13% last year, compared with just 4% in China.