Chinese funds reduce equity exposure to one-year minimum

Chinese funds reduce equity exposure to one-year minimum

For the next three months Chinese fund managers reduced their suggested equity exposure to the lowest value for more than a year, amid concerns regarding tightening liquidity as well as profit-taking by institutional investors because the year-end is getting closer.

The fund managers cut their suggested equity allocations to approximately 71.9% from 79.4% in November, according to a survey of 8 China-based fund managers, which was conducted this week.

The fund managers have spurred their suggested bond allocations for the nearer three months to 6.9% from 5.6% the previous month.

Additionally, they have also lifted recommended cash allocations to approximately i21.3% for the next three months versus 15% last month.   

Liquidity conditions appear to be a huge concern ahead of the year-end. Besides this investors worry that monetary policy would be tightened in 2018.

The fund managers polled were still mixed on asset allocations for the upcoming month, with three forecasting a cut and just one pointing to a jump, and four suggested the same level of equity exposure.

Similar

German ZEW economic sentiment tacks on in January

In January, German economic sentiment inched up more than anticipated, while the current conditions index reached a record maximum, driving optimism over the strength of the EU’s number one economy, as industry data reported on Tuesday…

Popular

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

promotions you can be interested in

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera