New Capital, an investment arm of EFG Asset Management, is seeking to ride the opportunities that will be thrown up by China’s state-owned enterprises (SOE) reform.
The investment firm has set up four new funds that will chase momentum-driven returns, the Hong Kong Economic Journal reported.
The funds will invest with counter-cyclical strategies in contrast to many conventional funds offered by rivals in the market, EFG Asset Management Hong Kong’s CEO Lee Chun-sing was quoted as saying.
Chinese stocks are currently trading at a historical low in terms of valuation, but things could change as Beijing rolls out more market reforms and opens up the capital account further, said Mok Man-fai, senior investment manager at New Capital.
Mok expects the International Monetary Fund to include China’s currency, the renminbi, into the fund’s Special Drawing Rights basket soon.
When that happens, investor confidence in Chinese assets will improve, he says.
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