Economy
Global Funds End Four-Year Underweight Position on Chinese Stocks
Livemint8h
THE BRIEF
1
Active long-only global funds shifted to a benchmark-neutral weighting on China starting in June, ending a four-year run of being underweight according to Bank of America data.
2
The shift involves nearly 2,800 global funds collectively managing $562 billion in Chinese stocks, encouraged by attractive valuations and tech-driven earnings improvements.
3
The MSCI China Index trades at about 10.2 times 12-month forward earnings, remaining below its 10-year average of 11.7 times.