LONDON: The world's largest asset manager, BlackRock Inc, has said it is dipping its toes back in to Chinese equity markets following their heavy falls this year, and on bets that Beijing will soon start providing stimulus again. "We are dipping a toe in Chinese equities by moving our tactical view from neutral at midyear to a modest overweight," BlackRock's "Investment Institute" strategists said in a weekly note first published on Monday. However, the more than 30 percentage-point underperformance of Chinese equities versus U.S. stocks this year was "overdone," especially with a six-to-12-month horizon. It also said the amount of Chinese assets held by clients at the moment was effectively too small considering the growing clout around the world held by Chinese financial markets. "Currently very small client allocations to Chinese assets would imply a view that China will become essentially un-investable," BlackRock said, adding it had also gone modestly "overweight" on emerging market local currency debt.- Reuters
