A light show is staged among skyscrapers of Lujiazui in east China's Shanghai, Sept. 30, 2020. (Xinhua/Fang Zhe)
"China's economy has come through the COVID-19 shock stronger than global peers, just as it did after the global financial crisis," the the BlackRock Investment Institute said in its mid-year outlook, calling China "a distinct pole of global growth."
BEIJING, Aug. 18 (Xinhua) -- World leading asset manager BlackRock has called on investors to lift allocations to China's markets.
The New York-based investment house's internal think-tank suggested "the higher allocations to Chinese stocks and debt as the country's capital markets" had boomed "in size and sophistication," according to a recent report by The Financial Times (FT).
Photo taken on April 1, 2019 shows the booth of Chinese tech company Huawei at Hanover Fair 2019 in Hanover, Germany. (Xinhua/Shan Yuqi)
"China is under-represented in global investors' portfolios but also, in our view, in global benchmarks," Wei Li, chief investment strategist at the BlackRock Investment Institute (BII), was quoted as saying by the FT.
"It has the second-largest equity market, the second-largest bond market. It should be represented more in portfolios," Li noted.
A laborer works at the construction site of Meizhou Bay cross-sea bridge of the Fuzhou-Xiamen high-speed railway in southeast China's Fujian Province, Nov. 2, 2020. (Xinhua/Song Weiwei)
For Chinese bonds, she said benchmark weightings should be ratcheted up "a bit more" than the two to three times multiple for equities, "in certain investor cases." "The starting point is so low. The direction of travel for China to be represented in global benchmarks is clear."
"China's economy has come through the COVID-19 shock stronger than global peers, just as it did after the global financial crisis," the BII said in its mid-year outlook published in July, calling the Asian country "a distinct pole of global growth."
Tourists shop at a duty-free shopping mall in Sanya City, south China's Hainan Province, Oct. 5, 2020. (Xinhua/Guo Cheng)
It was "time to treat (China) as an investment destination separate from emerging and developed markets," the outlook read. ■
