Written by Ko Gui-ching
NEW YORK (Reuters) – Asset managers at public and private funds believe some Chinese stocks are trading at attractive prices, but uncertainty surrounding the upcoming U.S. presidential election , has not yet reached the point of purchase, an investment advisor official said.
Christopher Eilman, former chief investment officer of the California State Teachers’ Retirement System (CalSTRS), said China was the focus of a regular discussion he moderated last week among more than a dozen money managers from the 300 Club. said. A group of leading investment professionals whose website aims to raise awareness about current investment issues.
The group is comprised of representatives from global investment funds such as French asset manager Amundi, which manages 2.16 trillion euros, and Canada Pension Plan, which manages $632.3 billion.
A representative for the group, asked for comment, said he had nothing further to add.
The conversation was intended to be about the risks investors faced if tensions between Israel and Iran worsened, but investors realized that the majority of Iran’s oil exports are being consumed by China. When he found out, the conversation quickly took a turn, Alman said.
“As an investor, when you think about geopolitical risk, the first thing that comes to mind is China,” said Eilman, who retired from the $347 billion CalSTRS fund at the end of June. “Almost everything ties back to China.”
Allman said money managers on the call agreed that the prices of some Chinese stocks were attractive from a technical and fundamental standpoint, but indicated they intend to increase their investments in China. He said there was no one.
“Nobody wants to rush into the U.S. election,” said Eilman, president of the North American chapter of the 300 Club. He declined to say which Chinese stocks investors find attractive.
Escalating political tensions in China and the US and the cooling of the Chinese economy are causing many asset managers to reduce or completely eliminate investments in China, Allman said, adding that US and Canadian funds are now investing in China. He added that he was particularly “reticent” to invest in.
But he said investment managers’ analysis of Chinese stocks is not as important as their view of real estate or U.S. tech stock valuations, given that Chinese investments typically account for no more than 5% of a North American fund’s portfolio. said.
China’s stock market has been on a rollercoaster ride since a series of policy announcements on September 24 raised expectations that the Chinese government would announce a major rescue package to revive its ailing economy. , which has soared more than 20%.
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(Reporter: Ko Guiqing)
