| Wednesday, February 14, 2007 |
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Fund managers are reducing exposure in China and India, where tightening concerns are rising, and investing more assets in Taiwan, Korea, and Thailand, according to Merrill Lynch's latest monthly survey of Pacific Rim fund managers.
"Within the region, the most notable shift is from China to other North Asian markets, as investors anticipate further Chinese tightening measures after the lunar New Year," said Willie Chan, a strategist at Merrill Lynch.
Twenty-three percent of investors said they expected the Chinese economy to get a little weaker over the next 12 months, while 58% expect it to stay the same.
In contrast, Taiwan, a self-governing island which China considers part of its territory, has become the favorite market of managers in the region. A net 25% of fund managers surveyed said they'd increase exposure to Taiwan, up from 21% in January.
Taiwan and South Korea both recorded more than $1 billion in foreign net inflows last month. |
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