Global fund managers were most optimistic about China's equities among the worldwide markets, with 56 percent of respondents holding an overweight view in the first quarter of 2012, said banking giant HSBC in its latest fund managers' survey released on Thursday.

Statistics showed over a tenth of fund managers shifted from neutral to overweight views in the first three months this year towards equities on the Chinese mainland, Hong Kong and Taiwan markets, which was one of the worst performing asset classes last year that started to turn around in the fourth quarter of 2011.

"With an attractive valuation, the equities may offer potential wealth opportunities," Eric Fu, HSBC's head of wealth development, Hong Kong, retail banking and wealth management, told a press conference.

"China's recent monetary easing measures, such as cutting the reserve ratio requirement, also improved market sentiment. Investors expect further easing which will continue to support the equities market,"Fu added.

The survey, conducted during January and February, also showed fund mangers were less bearish on equities as equity markets rebounded, with 50 percent and 30 percent of respondents holding neutral and overweight views in the first quarter, up from 20 percent and 30 percent respectively in the fourth quarter of 2011.

Meanwhile, about 44 percent of fund managers were underweight towards cash, compared with last quarter's 22 percent.

"While the survey shows a continued and increasing preference for bonds as investors look for yield in a prolonged low interest environment, fund managers are looking at riskier assets again on the back of improving economies, resilient corporate earnings and attractive valuations," said Fu.

Related

• Global fund managers favor emerging markets assets
• Fund managers optimistic

Go to Forum >>0 Comment(s)