[Asia Economy Reporter Yujin Cho] Global asset management giant BlackRock is increasing its investment allocation in Chinese stocks, optimistic that regulatory measures by Chinese authorities will ease around next year, Bloomberg reported on the 23rd (local time).
Belinda Boy, BlackRock's Asia-Pacific regional head, stated, "There are signs of improvement in the Chinese stock market," adding, "We have started to view Chinese growth stocks more positively than India, which saw significant gains this year."
Boy explained that while concerns over liquidity tightening and a sluggish initial public offering (IPO) market have dampened the Indian stock market, investors' growing belief that the worst of the investigations by Chinese regulatory authorities is over is sending clear signals of a rebound in the Chinese stock market.
Lucy Liu, BlackRock's emerging markets equity portfolio manager, said, "Now is the right time to position in the Chinese market," noting, "There are signs that the internet and real estate sectors have bottomed out and are recovering, which bodes well for future upward momentum."
BlackRock is increasing its investments in China focusing on four themes: sustainability, self-reliance, social equality, and data security. The firm also added that the Chinese authorities' accommodative monetary policy creates a favorable environment for betting on Chinese growth stocks.
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