EVENTS:   Best Equity Short Ideas Conference Call 12 - Zach Shannon/Corto Capital Advisors & Craig Huber/Huber Research Partners & Thomas Beevers /Forensic Alpha & Ed Steele/Iron Blue Financials & Bill Campbell/Paragon Intel - 12 Nov 25   Will AI Deflate the World? Macro Lessons from Three Industrial Revolutions and China - Manoj Pradhan/Talking Heads Macro - 13 Nov 25     ROADSHOWS: Forest Products Sector Equity and Commodity Research With Expertise in Distressed Debt - Kevin Mason /ERA Research   •   London   12 - 14 Nov 25       Buyside to Buyside Forum and Expert Calls across TMT, Consumer, Healthcare and Fintech - Andrew Peters /Revelare Partners   •   London   17 - 19 Nov 25       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   17 - 19 Nov 25      

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Company Research

China Real Estate: Continued fund rotation drives new lows

Copley Fund Research

Steven Copley takes a look at positions in China’s real estate sector, and it does not look good. Real estate holdings in active China equity funds have plummeted to a new low of 2.51% (from 8%), with only 76.4% of funds maintaining any position. The number of real estate companies held has plummeted from just under 100 in 2019 to just 42. It represents the largest percentage of funds invested in any sector, with significant closures driven by key investors such as Janus Henderson and Quilter. Amid the downturn, KE Holdings stands out, having attracted a growing ownership base and reaching an all-time high in investment. Nevertheless, investors are reallocating to sectors like Technology, Energy and Materials.

Edition: 187

- 31 May, 2024