Here are top stock picks by China’s fund managers in the world’s best-performing market
- Chinese fund managers increased their holdings of consumer stocks by 3.5 per cent in the first quarter
- Overall stock holdings of Chinese mutual funds rose to the highest level since 2015
Chinese consumer companies are back on fund managers’ list of most favoured stocks, as they increased their holdings of the sector more than any other industry at the start of the bull market.
Money managers of China-domiciled mutual funds bought the likes of liquor distiller Wuliangye Yibin and pig breeder Wens Foodstuffs Group in the first quarter, boosting their allocations to the sector by 3.5 per cent to 14.3 per cent in the first quarter, according to data compiled by Zhongtai Securities that tracks 1,083 equity funds that invest in Chinese stocks. The earlier high was 10.8 per cent for the previous three-month period.
Fund managers also increased buying of technology companies, while cutting the positions on utility, property and banking stocks, the data showed.
The bets have proved prescient. Consumer and technology stocks were the best-performing sectors on the CSI 300 Index of Chinese big-caps in the first three months, rising 46 per cent and 45 per cent, respectively.
Shares of Wuliangye, Kweichow Moutai and Wens Foodstuffs all rose to records. The CSI 300 climbed 29 per cent in the span and entered bull-market territory in February after rising 20 per cent from a low.