The latest HSBC quarterly Fund Managers Survey has revealed bullish sentiment towards Greater China equities during the first quarter of 2009.
"Fund managers are most optimistic about Greater China equities because they expect the stimulus policies of the Chinese government to support domestic demand and economic growth," HSBC Australia head of funds and investments Charles Genocchio said.
"This may also be linked to the potential positive impact of the US stimulus and recovery measures on China's economy."
The survey found 67 per cent of fund managers now had an overweight view of Greater China stocks, while only 50 per cent displayed this sentiment in the final quarter of 2008.
Bonds also remained a popular asset class among fund managers, with a growing proportion expressing an overweight view in regard to them. Survey responses showed 57 per cent of managers favoured bonds, up from 50 during the fourth quarter of 2008.
"Flight to quality continues to be a central theme for fund managers as they tend to veer towards more conservative asset classes given continued market volatility and the global economic uncertainty. We expect this sentiment to remain in the medium term," Genocchio said.
Within the asset class of bonds those emanating from Europe were the most popular due to expectations of further rate cuts, he said.
