More global investors eye Chinese equities, ending 4-year underweight run, bank says
Global investors are taking another look at Chinese equities after years of cautious positioning, drawn by relatively cheap valuations and opportunities in artificial intelligence, although an end to persistent selling does not indicate an outright bullish turn, according to analysts. Global active long-only funds have raised their average allocation to Chinese equities to benchmark-neutral from…
Global investors are beginning to take a fresh interest in Chinese equities, ending a four-year trend of underweight positioning, according to a recent Bank of America analysis of 2,767 global funds. The shift in allocation has been driven by relatively cheap valuations and opportunities in artificial intelligence, although it does not indicate a bullish turn.
Analysts note that while foreign exposure to Chinese equities would "edge up gradually and moderately," it remains tempered by concerns over economic momentum, policy risks, and geopolitical tensions.
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