Fund manager confidence in China is trending downwards in the midst of an economic slowdown, according to a survey by Bank of America.
Confidence in Chinese equities is trending lower with just 5 percent of regional fund managers holding an overweight position in the market, according to a survey by Bank of America (BofA).
This compares to 27 percent in April and 39 percent in March.
Economic Slowdown
The slowdown in China’s economy, which has lost post-reopening momentum, was cited as a top driver for the worsened sentiments. Around 20 percent of respondents expect the Chinese economy to strengthen in the next 12 months, compared to 49 percent in May and 79 percent in April.
«The fragile economic recovery in China has underwhelmed one and all. Market expectations in China are tepid as well, although not outright bearish,» said BofA strategists, including Ritesh Samadhiya, in the report.
The report was based on a survey of 166 investors who collectively manage approximately $329 billion of assets.
