Germany's KZVK pension fund, with assets under management amounting to 34.1 billion euros (HK$314.74 billion), delegated US$50 million (HK$390 million) to Fullgoal Asset Management (HK) in the second quarter to invest in Chinese stocks across Hong Kong, mainland China, and US markets, according to Bloomberg.
Although the investment amount is negligible compared to the market capitalization of Chinese stocks or Kirchliche Zusatzversorgungskasse des VDD's asset size, the report described this as a rare move among global institutions that have been cautious about investing in Chinese stocks in recent years.
The Hang Seng Index has rebounded from its low since the fourth quarter of 2024, rising 16 percent year-to-date and outperforming the US' Standard and Poor's 500 Index by nearly 10 percentage points.
However, the report noted that foreign long-only investors were caught off guard by the rebound in Chinese stocks, with most publicly disclosed investment mandates for Chinese equities being extensions of existing allocations rather than new ones.
Cameron Systermans, head of Multi-Asset, Asia for Mercer, told Bloomberg that no clear trend has been observed of European and US asset owners allocating mandates specifically to Greater China.
Currently, the firm advises investors against overexposure to any single country.
Headquartered in Cologne, Germany, KZVK manages funds for more than 240,000 pension recipients.
A member of its management board said in an interview this May that the fund's exposure to China remains relatively low compared to the size of China's economy.
Fullgoal Asset Management (HK)'s parent company is Shanghai-based Fullgoal Fund Management.
ANSON LUK
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