Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

BlackRock says it is dipping its toes back in to China after rout

09/28/2021 | 07:22pm EDT
People are seen in front of a showroom that hosts BlackRock in Davos

LONDON (Reuters) - The world's largest asset manager, BlackRock Inc, has said it is dipping its toes back in to Chinese equity markets following their heavy falls this year, and on bets that Beijing will soon start providing stimulus again.

Some of China's biggest stocks are on course for their worst quarter on record following regulatory clampdowns that have hammered super-sized tech firms and education providers, and turmoil now engulfing property giant Evergrande.

"We are dipping a toe in Chinese equities by moving our tactical view from neutral at midyear to a modest overweight," BlackRock's "Investment Institute" strategists said in a weekly note first published on Monday.

"This call is partly rooted in our expectation for incremental near-term easing via three policy levers - monetary, fiscal and regulatory - with growth slowdown likely having reached a level that policy makers cannot ignore."

The firm added that China's economic growth rate was likely to drop to around 3% in the final three months of the year from a stellar 18% in the first quarter.

However, the more than 30 percentage-point underperformance of Chinese equities versus U.S. stocks this year was "overdone," especially with a six-to-12-month horizon.

It also said the amount of Chinese assets held by clients at the moment was effectively too small considering the growing clout around the world held by Chinese financial markets.

"Currently very small client allocations to Chinese assets would imply a view that China will become essentially un-investable," BlackRock said, adding it had also gone modestly "overweight" on emerging market local currency debt.

(Graphic: China property comes crashing down,


(Reporting by Marc Jones in London; Editing by Karin Strohecker and Matthew Lewis)

By Marc Jones

© Reuters 2021
Latest news "Economy & Forex"
10:13aTop oil exporter Saudi Arabia targets net zero emissions by 2060
09:57aAramco aims for net zero emissions from operations by 2050, CEO says
09:55aExclusive-Italy, UniCredit to end talks over Monte dei Paschi sale -sources
08:40aSpain's sabadell says its board has told co-op bank "this is not a transaction that we wish to explore at this moment"
08:40aSpain's sabadell says has received an offer from co-operative bank for its british unit tsb
08:14aRESERVE BANK OF ZIMBABWE : Money Update as at 15 October 2021
08:04aMETHANE : MEPs want binding target to bring double win for climate and health
07:33aChina to pilot property tax scheme in some regions -Xinhua
06:58aAfghanistan heading towards collapse faster than expected, Swedish minister warns
05:12aChina's steel group says must ensure supply, control price in volatile market
Latest news "Economy & Forex"