Mutual funds add consumer stocks in Q4

Source: Xinhua | 2018-01-31

MUTUAL funds continued to add consumer stocks to their portfolio in the fourth quarter of 2017, said UBS Securities.

This increase came on the heels of tighter financial supervision and open market operations by the Chinese authorities, the report released by the Swiss brokerage said.

The sectors which saw the greatest weighting increases were insurance, beverages (mainly liquor), white goods, and property developers, the report said, adding that electronics, non-ferrous metals and securities suffered the largest drop in weightings.

Electronics and beverages remained the two most overweighted sectors, although the former saw the biggest weighting drop in the fourth quarter, the report said.

“In the A-share market we suggest a well-balanced sector allocation, and continue to prefer financials (insurers and large banks), consumer staples, tourism, healthcare, and utilities,” said Gao Ting, head of China Strategy at the firm.