Improvements in governance, management and efficiency make China’s state-owned enterprises (SOEs) an attractive choice for investors.
FSA looks at top performing China equity funds and finds that half of them are ETFs.
It’s Allianz vs Open Door in a quick comparison of two Chinese A-share funds.
The firm’s China-focused portfolio has been taking profits from offshore-listed equities and increasing exposure to both A-shares and mainland bonds in the past few months, said Ricky Tang, Schroders multi-asset product manager.
While global investors pulled out of China ETFs in 2017, many bought the Kraneshares CSI China Internet ETF, which saw the biggest inflows in this category, according to data from Morningstar.
Largely within expectations, the MSCI will add Chinese A-shares to its emerging markets indices starting in May next year – a symbolic rather than impactful move in the short run.
Chinese company earnings estimates tend to be inaccurate, making it difficult to single out companies with earnings momentum, said Mandy Chan, head of China and Hong Kong equities at HSBC Global Asset Management.
Blackrock’s Andrew Swan is bullish on old economy stocks and cautious about technology, while overweighting China, India and Indonesia in the company’s flagship Asia ex-Japan equity fund.
Funds from UBS, Allianz, Schroders, BOCHK, CCB International and Shenyin Wanguo rank among the best and the worst performing China equity funds available for Hong Kong and Singapore investors.
FSA found an interesting pattern of capital flows in the best and worst performing China mutual funds domiciled in Hong Kong, with the focus on the 2015 China stock market peak.