Investment banks suggest Chinese stocks will maintain their recent resilience, supported by demand for yuan-linked assets and a rebound in the property market. Optimism is building following data showing that home prices in major mainland cities have reversed their previous declines.

Chinese stocks are likely to continue the resilience they have shown since the war in the Middle East began, thanks to haven demand for yuan-linked assets, the green shoots of the property market and the inclusion of tech start-ups in key equity gauges, according to fund managers and investment banks. Optimism about Chinese equities was building after official data showed that home prices in the biggest mainland cities reversed declines and an inflationary trend took hold in March, said money...