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Investors are eager to bet on emerging markets, but seem to be evading the biggest one of all. Thanks to a meltdown in equities paired with currency devaluation, investors are wary of throwing money into China.
Nowhere is this lack of confidence more obvious than stocks. A recent Goldman Sachs analysis of over $1 trillion of mutual-fund assets found funds are underweight in Chinese stocks by 3.1%. That’s the largest shortfall against global benchmarks in a decade, the Wall Street Journal reports.
Many investors say they are worried about steps Beijing has taken to control market convulsions, doing everything from currency intervention to buying back shares with state-backed funds and enforcing across-the-board trading suspensions. [WSJ]
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