Global Fund Managers Resume Investments in China - Risks Surrounding Policies

“We hit the bottom. Time to invest” — SG Kleinwert

The government changed the rules from scratch, and it was also pointed out that it exists as a risk

Fund managers from around the world have resumed investing in the Chinese market. The MSCI China Index rose 24% from January's low.

　　Many investors refrained from investing in China or completely withdrew due to concerns surrounding the Chinese economy, worsening real estate crisis, economic stimulus measures that did not seem effective, and tension in the US-China relationship.

　　However, in addition to improving the economic outlook, the Chinese government announced new measures to support the housing market, increasing the number of investors around the world who think the worst period has come out.

　　Although the rebound has slowed slightly in recent weeks, such as real estate stocks plummeting from high prices, the total market value of China/Hong Kong stocks as a whole has increased by about 2 trillion dollars (about 312 trillion yen) from the January low, and China's strong performance is conspicuous even in emerging markets.

　　The Goldman Sachs Group says that the recent fall is not a process leading to a new low price, and that it “provides better entry points” for investors.

　　“We hit the bottom. The person who says “it's time to invest” is Gene Salerno (CIO, working in London) of SG Kleinwart Humbros.

　　Efforts by the government were still insufficient, and SG thought “it is preferable to miss the first step in an elusive recovery rather than endure a prolonged crash,” so they missed the opportunity to invest at the bottom price and refrained from investing funds at the beginning of price increases.

　　However, based on new movements by the government and improvements in investor sentiment, the company now slightly “overweights” China over its shares in emerging markets.

〈Personally, I already own Chinese stocks〉