Swiss private bank Union Bancaire Privée (UBP) is back in Chinese markets, its chief investment officer said, making its way back to the world’s second-largest economy after withdrawing last year.
UBP has more than $150 billion of assets. It returned to China in August after having exited all positions in Chinese equities and credit by the third quarter of 2021. Many institutional investors have reduced exposure to China since 2019 amid a regulatory crackdown on tech giants and a deterioration in Sino-U.S. relations.
UBP has only bought China A-shares, which is the domestic sector and is avoiding companies that might have exposure to geopolitical issues. Both the CSI 300 index and Hang Seng Index are down over 20% each. UBP believes China is slowly poised to recover although it will not be smooth sailing.