BlackRock says it is going underweight on Hong Kong stocks due to weakening business and consumer confidence amid political tensions and the Covid pandemic, while holding a more optimistic view of other markets.
The asset manager is overweight on other Asian stocks, especially India and Indonesia markets. It predicted great capital would flow into China and the Aisa market in the coming year in the low-yield situation.
Income-generating assets keep shrinking, partly due to the increase in negative-yielding bonds, said Belinda Boa, head of active investments for Asia Pacific and chief investment officer of emerging markets, fundamental active equity.
Negative-yielding bonds are now more than the US$15.5 trillion globally and as policymakers cut rates steeply, the company sees China as a clear beneficiary.