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Sanctions Risk Prompts Fund to Cut China State Firms’ Debt

  • Jupiter Asset’s Aggarwal says sanctions ‘a complete black box’
  • State-linked firms caught in crosshairs amid U.S. China spat
A China National Chemical Corp. building, also known as ChemChina, stands in Beijing.

A China National Chemical Corp. building, also known as ChemChina, stands in Beijing.

Photographer: Fred Dufour/AFP via Getty Images
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A fund manager at a $51 billion asset management firm has been cutting exposure to debts of Chinese state-linked borrowers, citing heightened risk of U.S. sanctions ahead of the elections.

“I’ve been reducing some of my Chinese quasi-sovereign risk,” said Vikram Aggarwal, fund manager, fixed income at Jupiter Asset Management Ltd., with more than 39.2 billion pounds ($51 billion) of assets under management as of the end of June. “It’s very hard to say what names they will sanction. It’s a complete black box.”