By Naomi Rovnick
LONDON (Reuters) – Global investors are preparing to stake bets on China again, in a major sentiment shift sparked by Beijing’s drive to reverse its economic slowdown and revive long term interest in its stock markets.
It is early days and few money managers expect a Chinese growth boom anytime soon. But government moves to entice more cash into equities and jolt consumer spending have boosted the appeal of still-low Chinese company valuations, said investors at groups overseeing more than $1.5 trillion of client funds between them.
“We’re going to be very disciplined but in aggregate we feel there’s more upside than downside,” said Gabriel Sacks, emerging market portfolio manager at Abrdn, which manages 506 billion pounds ($677 billion) of assets.
He said the group had bought China stocks “selectively” last week and would wait for more detailed policy plans from Beijing following some unusually candid economic support…
