Chinese fund managers are cutting back on their equity exposure to an average of 86.4%, down from 88.3%, according to a Reuters poll. Evidently, soaring real estate prices has many investment managers expecting the Chinese government to impose monetary policies to curb the runaway prices.
Their exposure to real estate now averages 6.3%, down from 13% in the previous poll.
Meanwhile, their fixed income exposure has risen to 3.7% from 2.6%, and cash holdings are now at 9.9%, up from 9.1%. The money managers expect the yield on the one-year central bank bill to reach 1.90625% within three months, up from its current 1.8802%. In the previous poll, they expected that yield to reach 1.9%.