Global Funds Lose Faith in Chinese Stocks Amid Mounting Pessimism
• 'Chronic disappointment' with Chinese stocks sees global funds make big cut in allocations amid pessimism on economy & policies • 78% of survey respondents say a structural derating of Chinese stocks is underway, justifying shrinking valuations • Hang Seng Index has worst start to a year since 2016 as stocks lose traction • Pessimism towards China 'all but entrenched' now due to chronic disappointment turning investors away • Japan remains undisputed favorite market for global fund managers, with net 59% exposure and expectations of double-digit returns