Chinese stocks on the radar of even the most pessimistic funds

Chinese stocks are now starting to become attractive even for funds that are pessimistic about the country. Chinese stocks, whose valuations have fallen considerably due to the risks of a slowing economy and political uncertainty, are now starting to become attractive even for funds that are pessimistic about the country. Ned Bell, CIO of Melbourne-based fund Bell Asset Management, which has not touched Chinese assets for almost a decade, said they are evaluating purchases in large-scale Chinese technology companies including Tencent. Louis Luo, fund manager at Abrdn, which is considering increasing its Chinese stock position through options, said, “We have been neutral in the last three quarters. But now we are starting to see value.” The MSCI China index, which closed in the red for the third time in a row last year, lost nearly 5 percent this year. However, JPMorgan Asset Management and Blackrock say that valuations have become attractive. JPMorgan strategist Sylvia Sheng said, “We have seen stability on the macro side. Gradually, this will lead to stability in company profitability.” Thomas Taw from Blackrock stated that the level of tactical inclusion of Chinese stocks in portfolios has been reached, and warned, “China is a very challenging market. It can be difficult to pick the right time.”