Vontobel Cuts China Stock Holdings to Chase Growth Elsewhere

(Bloomberg) —Vontobel Asset Management AG is reducing holdings in Chinese stocks to free up cash for more attractive picks in countries such as Brazil, India and Mexico.

The Zurich-based money manager with $2.2 billion deployed in emerging markets has moved from overweight to a deeply underweight stance on Chinese equities and is reallocating capital mainly to these three countries, strategist Ramiz Chelat said. These markets offer something that China increasingly lacks companies with earnings and margin growth.