China Everbright, one of China’s largest state-endorsed asset management firms, has warned that it is ready to offload some of its holdings that it fears will only deteriorate in value in the future.
The company, responsible for roughly $18 billion in assets, has identified roughly two dozen stocks that it is ready to sell in the very near future, according to CEO Chen Shuang.
“We will be actively disposing of assets and be prudent about new investments,” said Chen. “Global markets including the US have peaked. We should be prepared for the next round of financial crises and turmoils.”
Everbright did not specify which stocks are in the firing line but, as Bloomberg notes, many of its Chinese tech holdings have performed poorly following IPOs this year. Electric car maker NIO and video-streamer iQiyi, both in Everbright’s portfolio, fell 3% on Tuesday after sinking as much as 12% on US markets.
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