Aug 5 (Reuters) - The market impact of China’s recent regulatory crackdown on companies is priced in, making stocks there relatively attractive compared to European and U.S. peers, a portfolio manager at Legal and General Investment Management (LGIM) said. “We haven’t changed our China overall view,” said Justin Onuekwusi, LGIM’s head of retail multi-asset funds, even as the recent government crackdown on property, technology and education sectors left his firm “surprised”. LGIM continues to hold Chinese stocks, believing them to represent better value at current levels than European and U.S. alternatives. “Our overall view is that given the Chinese equities are already at depressed level, the froth in the market is in U.S. equities and European equities,” Onuekwusi told the Reuters Global Markets Forum on Wednesday. A possible pullback in Chinese growth would hit German and U.S. stocks more than their Chinese peers, said Onuekwusi, whose firm oversees 1.3 trillion pounds ($1.8 trillion) in assets. AIA Group CIO Mark Konyn also expressed a positive outlook on China to the Forum, due to long-term structural growth and a commitment to opening up its financial markets to foreign investors. Meanwhile, Onuekwusi said Australian, New Zealand and South Korean bonds were attractive due to steeper yield curves, adding that vaccine efficacy against COVID-19 variants was a key risk for markets globally. He expected the Australian dollar to make a return as a carry trade favourite in the medium-term, although it faced short-term risks from a slowing Chinese economy and its repercussions on Australia’s exports. Nearer term, "all eyes on Jackson Hole" said Onuekwusi, whose base case is Fed Chair Jerome Powell striking a "very strongly" dovish tone at the annual gathering of central bankers. (This interview was conducted in the Reuters Global Markets Forum chat room on Refinitiv Messenger. Join GMF: refini.tv/33uoFoQ) ($1 = 0.7199 pounds) Reporting by Aaron Saldanha and Lisa Mattackal in Bengaluru Additional reporting by Supriya Rangarajan Editing by Divya Chowdhury and Mark Potter Our Standards: The Thomson Reuters Trust Principles.