BlackRock Wants Investors to Increase China Exposure, Should You Follow?

Contact Your Elected Officials
The Epoch Times Logo

BlackRock, the world’s largest investment manager with more than $9 trillion in assets under management, recently made a very contrarian call.

The investing giant argued that China is no longer an emerging market and as such, investors need to boost their investments in Chinese stocks and bonds.

China is underrepresented in investors’ portfolios, Wei Li, chief investment strategist at BlackRock Investment Institute, told the Financial Times on Aug. 17.

BlackRock’s latest bullish call on China follows a research report it issued in May, which also argued that Chinese stocks and bonds allocation in global benchmark indices is too low. In that report, BlackRock said that global economic growth is becoming increasingly bipolar, led by the United States and China at opposite ends of that spectrum, and investors need exposure to both in almost equal measures.

It’s an especially contrarian view considering the recent pain surrounding Chinese stocks. 

Many experts are now questioning Chinese companies.

Goldman Sachs recently cut their rating on several Chinese firms, while UK hedge fund Marshall Wace has questioned whether Chinese stocks are investable in the near term.

More broadly, China’s A-shares have trailed global markets, and Chinese companies listed in the United States and Hong Kong have underperformed even more after recent regulatory crackdowns and compliance issues facing several well-known Chinese firms. 

So should investors trust BlackRock, the world’s largest asset manager, and double down on their Chinese investments?

Let’s analyze further.

First, let’s examine BlackRock’s motives and incentives. Its CEO, Larry Fink, has been trying to cultivate a strong relationship with Beijing for many years. BlackRock in June became the first U.S. asset manager to receive approval to establish a mutual fund business in China, a position “we are honored to be in,” Fink said in a statement at the time.

BlackRock also has one of the biggest rosters of investment funds with China exposure, including dedicated China funds, as well as Asian and emerging markets funds with China allocation. 

The firm’s flagship BlackRock China Fund, which has positions in Tencent, China Merchant Bank, and electric vehicle maker Xpeng, had assets under management of more than $1.5 billion as of Aug. 20. BlackRock also runs a China bond fund that invests in a variety of China fixed income products, including onshore and offshore RMB-denominated bonds, as well as USD-denominated offshore bonds.

In other words, BlackRock would be well-incentivized to drum up support for investing in China—it earns fees and other revenues from investors who put cash in their funds.

By Fan Yu

Read Full Article on TheEpochTimes.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Trump’s Middle East Triumph is Worth Celebrating Even As Peace Remains Elusive 

President Trump’s bold foreign policy defies globalist appeasement, showcasing unwavering American strength and decisive leadership on the world stage.

Are conservatives fighting a fiction of woke?

Wokery, it hurts to say it, is too disorganized to have an organized cosmology or doctrine of metaphysical belief.

Illinois Democrat Offenders Reveal Party

The crime of J.B Pritzker and Brandon Johnson in this episode of American history is called subversion at the least , but could be as serious as treason.

Inside the Public School Librarian Jihad to Keep Transgender Propaganda on Shelves

Public school librarians are doing all they can to keep child tranny propaganda flowing directly into the malleable minds of their charges.

Five Reasons Why The Latest Czech Elections Were So Important

Populist-nationalist politician Andrej Babis is poised to return to the premiership after his party's victory. Here are 5 reasons why this is so important.

New York AG Letitia James Indicted on Federal Charges

New York Attorney General Letitia James was indicted by a grand jury on federal charges, according to an indictment on unsealed on Thursday.

6 Ways Vaccine Policy Has Changed Under RFK Jr.

Health Sec RFK, Jr. and officials at the HHS changed recommendations and policies for multiple vaccines, including shots against COVID-19 and measles.

Journalists Recount Antifa Violence in Roundtable With Trump

President Trump met at the White House with journalists attacked by the newly designated terrorist group Antifa, joined by Cabinet officials for a roundtable.

IRS to Furlough 34,000 Employees as Government Shutdown Halts Treasury Operations

The IRS said in an emergency message to staff that it will furlough more than 34,000 employees starting on Oct. 8 due to the government shutdown.

Trump Says He May Invoke Insurrection Act in Portland If Necessary

President Donald Trump on Oct. 6 said he may consider invoking the Insurrection Act in Portland, Oregon, if necessary.

Trump: All Medium, Heavy Duty Trucks Entering US Will See 25 Percent Tariff on Nov. 1

President Trump announced on Monday that all medium and heavy-duty trucks entering the United States will see a 25 percent tariff starting on Nov. 1.

Treasury Names Social Security Commissioner as CEO of IRS

Treasury Sec. Scott Bessent announced that Frank Bisignano, the head of the Social Security Administration (SSA), will also serve as CEO of the IRS.

Agencies Terminated, Descoped 94 Wasteful Contracts With $8.5 Billion Ceiling Value, Says DOGE

Various federal government agencies have terminated and descoped 94 wasteful contracts over the past five days, DOGE said in an Oct. 4 post on X.
spot_img

Related Articles

Popular Categories

MAGA Business Central