Nearly 50% of institutional investors and family offices in Asia Pacific intend to increase the number of external managers for their thematic investments in equities over the next 12 months.
Investors should dig deeper into subsectors along the value chain to benefit from China’s carbon neutrality push, Asian equities experts said.
The Korean sovereign wealth fund has divested all $221.5 million worth of its Alibaba equity investments in the US and increased its Baidu holdings by 450% by the end of June.
Government support in carbon neutrality, plus regulation overhauls in the cybersecurity space, have created a favourable environment to further diversify into green stocks.
A regulation overhaul and homecoming of Chinese companies will make Hong Kong and Chinese equity markets more investable for international investors in the long term.
Some short-term re-positioning may be needed, but as regulations become clearer, the valuation of Chinese stocks, especially in the tech sector, remains attractive, experts said.