Global investors have turned more constructive on Chinese stocks and “have built significant exposure to mainland equities”, investment bank HSBC said in a report after a flurry of steps taken by the regulator sparked a 10 per cent rebound from a February low in China’s CSI 300 Index, a benchmark comprising 300 of the largest companies listed on the Shanghai and Shenzhen stock exchanges.
“GEM [global emerging markets] funds have rolled back on their underweight [position] on mainland China and turned neutral, while Asia’s funds exposure on the market is now at a seven-month high,” said the bank’s team of strategists led by Herald van der Linde in a report published on Thursday. “This has come at the cost of a significant cut in allocation in Taiwan.”
