Chinese stocks pose reputational risk to US, Canadian pension funds amid geopolitical tensions, says Alpine Macro strategist
Money managers trying to convince their boards to invest in Chinese assets worry about being seen to be aligning with a hostile government, says research firmEarlier this month Canada’s biggest pension fund trimmed staff in its Hong Kong office and paused new investments in China, according to ReutersChina stock marketJiaxing LiPublished: 8:00pm, 26 Sep, 2023Why you can trust SCMP
As a result, they are reducing their exposure to the country and use any market rallies as an opportunity to sell, it said.
“This kind of selling is not motivated by economic and financial considerations, but by political and geopolitical factors,” said Yan Wang, chief strategist for emerging markets and China, in a podcast presentation to clients. “We can argue that this selling doesn’t really make economic sense, but the market will just face this kind of continuous headwind until the selling pressure is exhausted.”