Perhaps reflecting an 7.85% decline in the Shanghai Composite index last week, Chinese fund managers have cut the proportion they’ll invest in stocks over the next three months to an eight-year low, according to a poll conducted by Reuters.
“Chinese fund managers cut their suggested equity allocations for the next three months to 66.3% – the lowest since June 2007 when the poll was first conducted – from 72.5%, according to a poll of eight China-based fund managers” said Reuters.
Reflective of the “risk off” sentiment expressed by Chinese stock investors, funds increased bond allocations to 14.4%, an increase on the 9.4% level seen in July.
Cash allocations swelled to 19.4% from 18.1%, despite an 25bps reduction in benchmark 12-month interest rates.
With less than 30 minutes to trade Chinese stocks remain under pressure on Monday with the benchmark Shanghai Composite index currently down 1.07%.
For the month the index has fallen 12.78%.
You can read more here.
Business Insider Emails & Alerts
Site highlights each day to your inbox.