Once engine of growth, is China now an 'alternative' investment?
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China's property bust and increasingly interventionist government, along with deepening geopolitical fissures with the United States, have dramatically dimmed its allure as a destination for international capital. Many investors are recategorizing their reduced exposure to China as alternative investments, seeing Chinese stocks and bonds as non-correlated, idiosyncratic plays that can serve as hedges against their core bets. U.S. equity funds' exposure to Chinese stocks has decreased in recent years, and global emerging market funds have also reduced their allocation to China. Chinese bonds have seen outflows for seven straight months, while emerging market ex-China debt funds have attracted inflows. The economic climate in China is seen as "clearly awful" by some investors, but there are still relative optimists who see opportunities for diversification and hedging in the Chinese market.

#China #Investment #Stocks #Bonds #AlternativeInvestment

https://m.economictimes.com/markets/stocks/news/once-engine-of-growth-is-china-now-an-alternative-investment/articleshow/107642118.cms