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.
The pension fund bowed to retail investor pressure and broadened its investment range into local stocks. Its policy reversal could set the stage for more populist pressure.
Cathay Life and Shin Kong Life have been upping their exposure to emerging market bonds. They and Fubon Life have also generated strong returns from high-dividend stocks.
Fund managers, already concerned about Beijing’s intervention in the stock market, won’t welcome a proposed index circuit breaker.
Southbound trading hits its quota limit for the first time, pushing the Hang Seng Index up to a level not seen since the financial crisis. But fears are voiced over imported volatility.
Fund managers adopting a ‘wait and see’ approach to adding China to portfolios are putting broader mandates at risk, says MSCI’s Chris Ryan.