Amundi Slashes China Stocks Citing Covid and Housing Problems
- Manager turns neutral nearly a week before party congress
- Says Covid Zero and housing problems are weighing on consumers
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Europe’s largest asset manager Amundi SA has turned tactically neutral on China equities in the firm’s global equity allocation, citing the nation’s Covid-Zero policy and property crisis.
“While monetary and fiscal policies are accommodative, problems in the housing sector and the sporadic Covid lockdowns are affecting household incomes and spending,” Amundi’s Group Chief Investment Officer Vincent Mortier and team, who oversee more than $2 trillion in global assets, wrote in a note.