Buyers swoop on Chinese stocks as economy rebounds

Multi-asset investors are returning to Chinese equities, as fears of a ‘hard landing' subside and the local economy shows signs of improvement.

In September, China’s Purchasing Manager Index (PMI), which many investors use as the key macroeconomic indicator, rose to a six-month high, adding to hopes of a rebound following a two-quarter slowdown for the index. Mona Shah, co-manager on the Rathbone Multi-Asset Portfolio range, has previously expressed concern over falling PMI numbers in emerging economies. Recently, however, she has begun researching Chinese equity funds with the view to make an initial investment, having had no allocation to the region for a long time. “In an ideal world, we would like to invest in a Chines...