Man Group Unit Bets on ‘Narrow and Shallow’ China Stock Rebound

Beijing’s abrupt end to stringent pandemic control policies buoyed markets, underpinned by expectations of consumption and production growth

(Bloomberg) — Man GLG, a unit of the world’s biggest publicly traded hedge fund firm, is betting on a “narrow and shallow” Chinese stock recovery after the world’s second-largest economy recently abandoned its “zero-Covid” policies.

The Man Group Plc unit, which oversaw $24 billion globally at the end of the third quarter, switched to a positive view on China between September and October, said Andrew Swan, its Asia ex-Japan equities head. It’s focusing on a limited set of opportunities, including travel, entertainment, insurance and industrial automation shares, where China’s reopening could lead to positive earnings revisions that have yet to be priced in.