Global Funds Reluctant To Return To Chinese Shares

By Sangmi Cha, Bloomberg Markets Live reporter and strategist

Signs of a softening stance from the US on China tariffs may be a cue to buy the Asian nation’s stocks for some traders, but for long-term global funds the risk is still too high to pile into the market.

Money managers and strategists at Franklin Templeton, UBS Global Wealth Management and Jupiter Asset Management are among those expecting the trade war to be drawn out and inflict significant pain on the Chinese economy, making them cautious. Their wariness suggests any temporary detente will likely prove insufficient to lure back global funds en masse.