But big, long-term foreign investors, are missing. Their absence, and asset managers' reasons for it, reveal a wariness in the investment community over how to price new risks for capital as China becomes a great power and a great U.S. rival.
"It's around capital preservation, not really the returns," said Hayden Briscoe, Asia-Pacific head of multi-asset portfolio management, at UBS Asset Management in Hong Kong. " still looking at geopolitical risk and the Russia experience recently probably makes them more tentative than they normally are."that the bid from long-only money managers is absent.
Allocation analysis from data firm EPFR shows a broad downtrend, especially to U.S.-domiciled China funds. Allocation to those hit a record low last October and has been falling on an annual basis for four years, EPFR figures show.