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.

- 31 May, 2024