Pictet Wealth Management returns to Chinese stocks after 18-month hiatus

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FE Team | Published: July 14, 2022 21:08:29

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HONG KONG, July 14 (Reuters): The wealth management arm of Swiss bank Pictet Group is buying Chinese equities again more than 18 months after it shunned the asset class, joining other foreign investors dipping back in as they bet on improving economic prospects and less regulatory intervention.
Pictet Wealth Management Asia Chief Investment Officer Alexandre Tavazzi said the unit, which has $291 billion under management, started adding back Chinese equities last week through its discretionary portfolios, which are mandates designed for wealthy clients.
"We have reduced growth rates for the US and Europe. So when we look at the overall market situation, we see one country standing out in terms of re-accelerating from here, and this is China," he said in an interview on Tuesday.
"So this is why we thought it makes sense to go back into Chinese equities."
China's easing of coronavirus travel rules combined with other policy signals have begun luring some foreign investors back to Chinese stocks, raising the chances that the market will sustain its bounce after months of heavy selling.
Pictet had moved out of Chinese equities in December 2020 because of rising uncertainties relating to slowing economic growth as well as a regulatory crackdown on the country's technology sector, Tavazzi said.
The wealth manager now expects powerful stimulus policies will rekindle growth momentum in the second half and in 2023 and also sees stock valuations as attractive, he added.