We are told by China bulls that everyone is bearish on China these days so that it is now contrarian to be all-in long China, the latest Bank of America Merrill Lynch fund manager survey suggests that Asia Pacific investors are getting ever more bullish on China. In fact, it was the second highest reading since record begin:
Asia-Pacific investors boosted their OW in China to the 2nd highest level on record (data since 2005), as expectations of a Chinese “hard-landing” remain relatively subdued.
On the other hand, a record per cent of investors are prepared to UW Australia over the next 12 months (net 32% UW). This big UW is in-line with bearish outlooks for both materials and banks, the two biggest sectors in Australia. Also, allocations to Indonesia fell sharply (from 6% OW to 8% UW).