Strategy

Strategy: BlackRock, the largest asset manager in the world, opines that Chinese property stocks are now a “Buy” following the easing of cooling measures, reduced inventory and lower funding costs. Moreover, valuations are undemanding with some property counters trading at 50-70% discount to their book values.

The asset manager added that it has been increasing its exposure in the property sector. Other sectors that the fund is interested in are the insurance and healthcare sectors.

For 3Q, BlackRock’s BGF China Fund outperformed the MSCI China benchmark, registering a flat performance versus a 5% decline in the benchmark index.

Ultimately, BlackRock believes that “opportunity comes from low expectations”, and that the very sceptical market is precisely why the house is excited about Chinese equities.