Investment banks are advising clients to reduce their China equity exposure amid fears that Beijing’s efforts to curb economic growth will be detrimental to property companies and banks, the South China Morning Post reported. BNP Paribas now rates some major banks, including perennial investor favorite China Merchants Bank, as "underweight." Clive McDonnell, the bank’s head of equity strategy, warned that government action could affect corporate growth at even the largest firms. Lan Xue, head of China research at Citi, also warned that "economic and stock market liquidity will be tighter than in past years." Citi is already advising investors to cut back on China stocks, warning that banks and some property firms are unlikely to repeat their stellar performances of 2007. However, a JPMorgan report was more optimistic about the prospects for China stocks, suggesting that the government may not find it so easy to rein in lending by its publicly listed banks.