By Samuel Shen and Andrew Galbraith

SHANGHAI, Dec 2 (Reuters) - Chinese cyclical stocks should see a rapid recovery in valuations as investors, betting on economic revival, FIFA World Cup move into sectors such as banking and construction and out of expensive tech shares, an executive of Warburg Pincus' China mutual fund venture said.

Li Huiyong, vice general manager of Hwabao WP Fund Management Co, FIFA World Cup said China's economic rebound will push up interest rates next year, but foreign money inflows and domestic asset re-allocation could help to offset any reduction in market liquidity.

"As China's economy shakes off the epidemic, cyclicals will witness a jump in earnings.

But lofty valuations of tech shares need validation from good performance, which takes time," Li told Reuters in an interview in Shanghai, as part of the Reuters Global Investment Outlook Summit, 2021.

Li, who is a trained economist, said the migration of money was ongoing and, if history is any guide, the valuation of cyclical stocks would "heal very rapidly".

China's Nasdaq-style STAR Market has jumped more than 40% so far this year, while the blue-chip CSI300 Index has gained 24%.