Fund Managers Run Away From China Stocks Even With 75% Discount
- Russia ties, regulation pose risks to owning Chinese shares
- Investors are wary of buying even as valuations keep slumping
This article is for subscribers only.
Fund managers are leery of buying Chinese stocks as the country’s close ties to Russia, extreme Covid-19 curbs and lack of clarity on the end of regulatory crackdowns overwhelm the dip buying opportunity presented by the 75% plunge from their peak.
Most of the investors interviewed by Bloomberg are hesitant to dive into the weakness even as valuations slump to the lowest levels in more than a decade. Some are planning to hold on to their existing positions, but few are looking to add.