BlackRock calls for investors to lift allocations to China’s markets


US-China relations updates

BlackRock’s research unit has said China should no longer be considered an emerging market and recommended investors boost their exposure to the country by as much as three times.

The New York-based investment house’s internal think-tank suggested the higher allocations to Chinese stocks and debt as the country’s capital markets have boomed in size and sophistication.

“China is under-represented in global investors’ portfolios but also, in our view, in global benchmarks,” Wei Li, chief investment strategist at the BlackRock Investment Institute (BII), said in an interview. “It has the second-largest equity market, the second-largest bond market. It should be represented more in portfolios.”

The bullish call comes during a tumultuous period for Chinese markets. The country’s CSI 300 equity barometer is down 4 per cent this…

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