China investors turn to renewables, chips, to avoid regulators’ attention

China investors turn to renewables, chips, to avoid regulators’ attention

summary [Music] regulatory shakeout drives portfolio overhaul renewables semiconductors consumer discretionary stocks search [Music] hong kong august 12th reuters investors in china are turning to semiconductors renewable energy and consumer-focused firms in the belief they offer safe harbor from a blizzard of regulatory action that has battered confidence and forced funds to overhaul their portfolios money managers view months of crackdowns that have hammered shares in sectors from tutoring to big tech as part of a major push from china’s communist party leadership to pursue common prosperity at the expense of private sector profit read more yet as selling has wiped billions from the value of companies in the crosshairs such as online giants tencent 0700.hk and alibaba 9988.hk share prices a firm seen on the right side of reform have searched since june for example china indexes of clean energy stocks csi 399 808 and semiconductor firms dot g30184 are up more than 30 compared with a 5 fall in the broader market csi 300 and a 15 drop in hong kong tech shares dot hs tech the buying has come from all kind of investors said credit suisse senior investment strategists suresh tansha foreign investors mutual funds they still need to allocate their money in china due to their mandates so they are now wanting to invest in line with where the government is delivering support he said investors sifting state media and president xi jinping’s speeches and books for policy clues saw one standout focus on reducing greenhouse gas emissions with broad goals for peak carbon emissions in 2030 and carbon neutrality by 2016. read more similar broad goals for driving domestic demand and homegrown production have put support under mainland listed consumer discretionary csi009111 firms and industrials csio0910 [Music] there’s electric vehicles renewables semiconductors from a self-sufficiency standpoint we look at these sectors and see that they could well keep on receiving support said alex wolf head of investment strategy at jp morgan private bank another one is upgrading manufacturing he said china is very keen and they have said it in the five-year plan to maintain manufacturing as a certain share of the economy and if anything increasing it like portfolio managers at city private bank and bnp paribas wealth management wolf favors mainland listings as less exposed to regulatory scrutiny and because the composition of the market tilts away from targets like tech or internet firms morgan stanley chief asia economist chattanaya said in note last week our equity strategists believe that over time the msci china universe will gradually have a more balanced sector allocation with a reduced weight for internet and a higher weight for sectors like industrials and i.t
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China investors turn to renewables, chips, to avoid regulators\' attention

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