China mutual funds raise bets on stocks on hope of easing poll
Post on: 2011-11-02 By: admin
SHANGHAI (Reuters) - Chinese fund managers are suggesting higher exposure to stocks and bonds, betting the government will start to loosen the screws on monetary policy as inflationary pressure eases, the latest monthly Reuters fund poll shows.
The average suggested equity weighting over the next three months rose to 83.6 percent from last month's 82.8 percent, while the recommended bond exposure rose to 8.7 percent from 6.0 percent, according to the poll of nine China-based fund managers conducted last week.
Meanwhile, they slashed their suggested allocations to cash to 7.8 percent from 11.3 percent last month.
"Inflation is trending lower ... Meanwhile, there could be fine-tuning of monetary policy, which creates opportunities for the stock market," said one of the surveyed fund managers, who declined to be identified.
He added, however, that China's economy is cooling -- a trend that's unlikely to change any time soon, because the country is suffering from structural problems.
Another fund manager said: "Future risks and opportunities depend on whether leading economic indicators of China and the U.S. can continue to improve. Renewed signs of an economic slowdown would be a blow to the stock market."
China's inflation has been falling from its peak for the past two months. Although fighting inflation remains Beijing's priority, Premier Wen Jiabao said recently that the government would appropriately fine-tune policies in response to changes in the economic situation.
China's main stock index has rebounded about 6 percent during the past week, buoyed by signs of easing inflationary pressure and progress in solving the Euro zone debt crisis.
Fund managers polled think the rebound will continue, forecasting on average that the index will rise 9 percent to 2,675 points in the next three months.
On sector allocation, fund managers raised their suggested weightings of real estate stocks to 7.8 percent from 6.9 percent last month, while boosting the recommended allocation to energy stocks by 2 percentage points to 8.9 percent.
The suggested weighting for financial stocks was lowered to 17 percent from 19 percent a month earlier, reflecting investor caution after a surge in banking stocks that was triggered by an arm of the country's sovereign wealth fund buying more shares in the big state lenders.
($1 = 6.381 Chinese Yuan)
(Additional reporting by David Lin)
@yahoonews on Twitter, become a fan on Facebook
Editors' PicksslideshowHillary Clinton's mother dies at 92slideshowJet makes belly landing in PolandslideshowWinter storm pelts East CoastslideshowNew Madoff book releasedslideshowTurkey quakestoryTop 5 places to live in another century
Explore Related Content1 - 4 of 12prevnext
Play VideoTrichet's Final ECB Rates Meeting
British singer Susan Boyle performs…
Why Mutual Funds Make Sense in a Volatile…Violent swings may be here to stay, which makes investing in individual stocks… Full Story»Why Mutual Funds Make Sense in a Volatile MarketU.S.News & World Report LP
Play VideoHedge Fund Managers Billion Dollar …
Top Stories »Greece faces meltdown after bailout vote bombshellBank of America drops $5 debit card fee planHillary Clinton’s mother dies at age 92Cain's conflicting statements create more questionsPlane carrying 230 makes emergency landing in WarsawThe hunt for MF Global's missing $700 millionVideo: Pat Summitt, no regrets on going public
Most PopularPregnant mom says sandwich arrest was 'horrifying'Reformed skinhead endures agony to remove tattoosPoll: For economy fix, Americans pick Reagan over RooseveltSteve Jobs’ Final Words Shared in Sister’s Eulogy“Worlds Most Inappropriate Halloween Party” and Domino’s Employees Suspected of Setting Fire to a Papa John’s PizzeriaFake Onion story causes real confusion for California town
Today on Yahoo!1 - 4 of 34prevnext
Pregnant mom details 'horrifying' arrest
'X Factor' singer under fire
The president Americans would bring back
Rice: Cheney said 'we...were going to die'
There are no comments yet
Sign into post a comment, orSign upfor a free account.
[[['Dekraai', 10]],
'http://news.yahoo.com/photos/mourners-remember-seal-beach-shooting-victims-1318620627-slideshow/',
'Click image to see more photos',
'http://l.yimg.com/a/p/us/news/editorial/3/2c/32c8e92d889f42edb719cb5257afdf4e.jpeg',
'Reuters/Lori Shepler',
[[['iPhone 4S', 11]],
'http://news.yahoo.com/photos/thousands-line-up-for-apple-s-iphone-4s-1318602841-slideshow/',
'Click image to see more photos',
'http://l.yimg.com/a/p/us/news/editorial/f/4f/f4f15e8f6f323f5386dc9fdf9e15dca8.jpeg',
'AP/Kirsty Wigglesworth',
[[['xxxxxxxxxxxxxxxxxxx', 11]],
[[['keyword', 9999999999999999999999999999999999999999999999999999999]],
'overwrite-pre-description',
'overwrite-link-string',
'overwrite-link-url'
YOU ON YAHOO! NEWS Your Activity|Social:OFFONTurn Social OnRemind me when I share|OptionsWhat is this?Not you? Log out of FacebookHow to remove this experienceLogin with Facebook No thanks
News For YouCain Now Recalls the Details of His Sexual Harassment CasesUS Airways moves call center work back to USTrump casino winner says 'no' to plastic surgeryGeorge Clooney's Ex: He Was Like a Dad to MeSister: Killer of 3 in home invasion abused meFormer CEO accused of targeting churchgoersOhio pastor apologizes for Halloween pamphletsSister: Killer in Conn. home invasion abused me20 Dramatic Divorce Tweets From Kim Kardashian's Sisters and HatersFrightening Accident at St. Louis Haunted House
SearchKeywordNews Search
Business News »Wall St slides on Greek referendum call Chuck MikolajczakNEW YORK (Reuters) - Stocks tumbled more than 2 percent on Tuesday after a proposed Greek referendum threatened to upend a European bailout plan to contain the sovereign debt crisis. More»Wall St slides on Greek referendum callNEW YORK (Reuters) - Stocks tumbled more than 2 percent on Tuesday after a proposed Greek referendum threatened to upend a European bailout plan to contain the sovereign debt crisis.Greece faces meltdown after bailout vote bombshell Dina Kyriakidou and Lefteris PapadimasATHENS (Reuters) - The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy… More»Greece faces meltdown after bailout vote bombshellATHENS (Reuters) - The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.MF Global collapses under euro zone bets Jonathan Spicer and Nick BrownNEW YORK (Reuters) - Jon Corzine's bid to revive his Wall Street career crashed and burned on Monday when his futures brokerage MF Global Holdings Ltd filed for bankruptcy protection following bad bets… More»MF Global collapses under euro zone betsNEW YORK (Reuters) - Jon Corzine's bid to revive his Wall Street career crashed and burned on Monday when his futures brokerage MF Global Holdings Ltd filed for bankruptcy protection following bad bets on euro zone debt.Bank of America drops $5 debit card fee plan Rick Rothacker(Reuters) - Bank of America Corp is dropping plans to charge a $5 monthly fee for debit card use, the bank said in a statement on Tuesday. More»Bank of America drops $5 debit card fee plan(Reuters) - Bank of America Corp is dropping plans to charge a $5 monthly fee for debit card use, the bank said in a statement on Tuesday.Manufacturing sector growth eases in October Leah Schnurr and Jason LangeNEW YORK (Reuters) - The pace of growth in the U.S. manufacturing sector unexpectedly slowed in October, in line with trends in China, Britain and Canada in data reported on Tuesday. More»Manufacturing sector growth eases in OctoberNEW YORK (Reuters) - The pace of growth in the U.S. manufacturing sector unexpectedly slowed in October, in line with trends in China, Britain and Canada in data reported on Tuesday.
FeaturedDaily Ticker exclusiveBiographer describes what Steve Jobs didn’t like about Bill Gates and Microsoft. More»Daily Ticker exclusiveDirect impactWhy Americans should care about the European debt crisis. More»Direct impactMarket madnessStock rally stalls as eurozone fix is strained by delays and disagreement. More»Market madness
Yahoo!FinanceMarket SummarySymbolLastChangeDow11,648.08-306.93-2.57%Nasdaq2,599.28-85.13-3.17%S&P 5001,216.78-36.52-2.91%10 Yr Bond(%)2.0030%-0.1720Oil90.53-2.66-2.85%Gold1,704.40-19.80-1.15%Trucks, SUVs power strong auto sales in OctoberFactory activity slows as economy stays sluggishGreek turmoil sends US and world markets lowerMore From Yahoo! Finance »
Brought to you byYahoo! Finance
Yahoo! NewsHomeU.S.WorldBusinessEntertainmentSportsTechPoliticsScienceHealthBlogsLocalPopularAll Yahoo! News »
Also On Yahoo!AutosFinanceGamesGroupsHealthMapsMoviesMusicomg!ShineShoppingSportsTravelTVAll Yahoo! »
Trending NowKris JennerKim KardashianJames GarnerEva LongoriaU.S. stocksKatie HolmesKris HumphriesMedicare16-foot python7 billionth baby
(c) Copyright Thomson Reuters 2011. Check for restrictions at: http://about.reuters.com/fulllegal.asp
Copyright © 2011 Yahoo! Inc. All rights reserved.
Article original from: http://news.yahoo.com/china-mutual-funds-raise-bets-stocks-hope-easing-161057387.html
