Domestic agencies tend to rate domestic firms more favourably than their foreign peers, but the difference is particularly striking in China.
Although new themes are emerging in portfolios, the overall risk approach remains fairly conservative, ratings agencies tell AsianInvestor.
The agency defends its stable outlook for both countries, arguing they have stronger credit profiles and have made economic adjustments. It warns the one to watch could be China.
Emerging markets are rising fast and have most potential in terms of retail funds as growth in the region’s offshore hubs stalls, finds Fitch Ratings.