(Bloomberg) In a change of tone over the world's two biggest emerging markets, global investors overseeing billions of dollars are slowly starting to favour China over India - reversing a year-long trend that has pushed stocks in opposite directions. BlackRock has upgraded Chinese stocks as policy hurdles ease, saying "the time to position in China is now", while trimming its exposure to Indian equities. Goldman Sachs Group and Nomura Holdings both downgraded Indian stocks recently, with the former upgrading offshore Chinese equities at the same time. Valuations are the key rationale as losses triggered by Beijing's wide-ranging regulatory crackdown have made Chinese equities relatively inexpensive while shares in the South Asian nation appear expensive after a world-beating rally. "There is more opportunity to allocate to China as the performance disparity between the two countries is one of the largest on record," said New York-based portfolio manager Tom Masi of GW&K Investment Management, who recently trimmed his India positions. The pivot towards China comes amid growing optimism that its battered equities have factored in the worst of Beijing's rein-tightening that at its mos...