Morningstar data shows that 15 funds available for distribution in Hong Kong and Singapore were exposed to China’s troubled property sector at the start of the year.
As part of a new initiative, FSA is talking to market participants about key trends that shape fund selection. This week Jenny Zeng, chief investment officer for Asian fixed income at Allianz Global Investors, discusses China’s embattled property sector.
The Chinese property industry is in hot water with the third major Chinese real estate company failing to repay its maturing notes in less than a month.
More Chinese property companies are in trouble and suffering credit downgrades.
Asset managers expect that Beijing will manage the property developer’s potential default in an orderly fashion.
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Despite the drop in prices, some fixed income managers increased exposure to the Chinese property developer during the past two months, said Morningstar.