BlackRock downgrades Chinese stocks as conviction sours amid property slump and stimulus policy limp
The world’s biggest money manager lost confidence in Chinese stocks and their emerging-market peers after turning bullish in FebruaryThe MSCI China Index has lost 11.8 per cent since late February; Chinese stocks alone account for 30 per cent weight in MSCI EM Index excluding Taiwan stocksChina stock marketJiaxing LiPublished: 5:40pm, 19 Sep, 2023Why you can trust SCMP
Strategists at BlackRock Investment institute downgraded its tactical view on Chinese equities and their emerging-market peers to neutral from overweight, saying “China’s property sector remains a drag even with growth showing signs of stabilising.”
“Growth has slowed. Policy stimulus is not as large as in the past,” strategists including Jean Boivin and Wei Li wrote in a report published on Monday. “Structural challenges imply deteriorating long-term growth” [while] geopolitical risks persist. “We see growth on a slower trajectory” in emerging markets, they added.
The institute provides BlackRock, which manages about US$9.4 trillion of assets, with research and insights on public and private markets, economies, politics and asset allocation.