Chinese fund managers have added new-energy, pharmaceuticals and small liquor distillers to their portfolios during the third quarter, while reducing holdings in large tech companies and those related to the property sector, reports the South China Morning Post.
Sungrow Power Supply, WuXi AppTec and Shanxi Xinghuacun Fen Wine Factory were among fund managers’ biggest increases in holdings in the past quarter. Tencent Holdings, the Chinese social-media giant trading in Hong Kong, Industrial Bank and Beijing Oriental Yuhong Waterproof Technology bore the brunt of the sell-offs in the period.
The repositioning offers an insight into how money managers were navigating through a raft of headwinds – accelerating inflation, China Evergrande Group’s debt woes, the power outage and the continuing fallout of the regulatory crackdown – that roiled stocks over the past month.
The total assets managed by China’s mutual funds increased 4% from the previous quarter to RMB 23.4 trillion ($3.7 trillion) at the end of September, with RMB 6.4 trillion allocated to stocks, according to data by Eastmoney.com. The industry’s equity holdings accounted for about 7% of the total values of the companies trading on the onshore markets.