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BofA: Global Funds End 4-Yr 'Underweight' Strategy on CN
2026-09-28 11:22:38 Global fund managers are gradually ending their long-standing "Underweight" strategy on Chinese equities, attracted by AI prospects and valuations. BofA strategist Nigel Tupper said that among nearly 2,800 global funds analyzed by the bank, the average allocation to China by actively managed long-only funds has shifted to "benchmark neutral" since June, ending a four-year underweight positioning. These funds collectively manage Chinese equities worth USD562 billion. Although the adjustment does not necessarily signal a full-fledged bull market turnaround, it indicates that fund managers have largely completed their reductions in holdings, removing a major obstacle to market recovery. Gary Tan, portfolio manager at Allspring Global Investments, said selling pressure is nearing a bottom, while investors' focus is shifting from position adjustments to earnings expectations. His firm is also selectively increasing holdings in Chinese equities. Herald van der Linde, Head of Asia-Pacific Equity Strategy at HSBC, said, "What you are buying is China's future." His current top picks are hardware technology and biopharmaceutical stocks, while the consumer and property sectors belong to "China's past." (mn/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |