Sentiment improving on Chinese equities - HSBC
After being one of the worst performing asset classes in 2011, fund managers are a little less bearish on Chinese equities, according to HSBC's latest Fund Managers' Survey.
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BUSINESSDESK: After being one of the worst performing asset classes in 2011, fund managers are a little less bearish on Chinese equities, according to HSBC’s latest Fund Managers’ Survey.
Some 50 percent of respondents held a neutral view towards equities, while 30 percent held an overweight view, compared with 20 percent and 30 percent respectively in the last quarter of 2011.
Meanwhile, enthusiasm for cash is on the wane, with 44 percent underweight, compared with 22 percent a quarter earlier, while exactly the reverse trend is seen in bonds, which are now favoured by 44 percent of fund managers surveyed.
“While the survey shows a continued and increasing preference for bonds as investors look for yield in a prolonged low interest environment. Fund managers are looking at riskier assets again on the back of improving economies, resilient corporate earnings and attractive valuations,” said Glen Tonks, Head of Wealth at HSBC New Zealand.
“Greater China equities may offer potential wealth opportunities and diversification for New Zealand growth orientated investors. China’s recent monetary easing measures such as cutting the reserve ratio requirement also improved market sentiment.”
Eighty-eight percent of respondents were bullish on Asian bonds while 78 percent still see European bonds as being out of favour.
BusinessDesk
Mon, 26 Mar 2012
Mon, 26 Mar 2012
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Sentiment improving on Chinese equities - HSBC
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