Barings' Deng adds to Chinese banks in £2bn fund

Barings' Agnes Deng is increasing exposure to Chinese banks within the £2.5bn Hong Kong China fund as valuations fall to levels last seen during the banking crisis.

Although the manager remains underweight financials, she has been topping up banks during the recent market volatility, with exposure up 5%. She said a lot of the negative news has been priced in to the shares, making them look attractive. "Valuations are cheap, close to what we saw at the bottom of 2008, but banks are delivering earnings growth, and generating 20% to shareholders." Deng, who has managed the fund since 2007, said she is still cautious with regards to some of the banks' ‘bad' loan books, but has been encouraged by recent interim results. "We are not going to move...