The latest flare-up in Sino-American trade tensions is a reason for investors to shift allocation toward the relatively cheaper and defensive corners of the Chinese stock market, according to strategists.

Analysts at Citigroup Inc. are touting domestic yield plays as safer bets as the artificial intelligence-led bull run in Chinese equities confronts the risk of higher tariffs. Those at JPMorgan Chase & Co. recommend buying shares of banks with a good track record of earnings and dividend payouts.

“A style rotation will likely start in the Chinese market in the coming weeks,” Hao Hong, chief investment officer at Lotus Asset Management Ltd., wrote in a note Monday. “The relative performance of growth sectors versus the value sectors is near its historical highs and will soon revert.”

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