Chinese fund manager with best returns of 2020 ready to cut back on new-energy stocks amid high valuations
- Lu Bin, whose HSBC Jintrust Carbon Awareness Equity Fund recorded the highest return among all Chinese stock funds, said it will be hard for traders to to turn a good profit in the clean-energy industry this year
- An index tracked by financial data provider Wind Information is down 9 per cent so far this year compared with a 74 per cent surge in 2020
“Traders who held the stocks of leading companies in the industry have earned high returns without doing anything in the past two years,” Lu said in an interview. “But the chance of that continuing this year is not great.
“We may slowly reduce our inventory as valuations increase when it comes to investment in new-energy stocks … and we will rapidly cut inventory in large proportions if risks start to emerge around the fundamentals of some specific segments of this sector.”
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His comments came after green power stocks experienced steep declines in the last few months. An index tracked by financial data provider Wind Information is down 9 per cent so far this year compared with a 74 per cent surge in 2020.