Blackrock investors slice China Exposure Bianca Hartge-Hazelman Australian investors are reducing their exposure Lo Chinese companies in favour of those in the United States, in another sign that...

Blackrock investors slice China Exposure
Bianca Hartge-Hazelman Australian investors are reducing their exposure Lo Chinese companies in favour of those in the United States, in another sign that markets expect China's growth to slow as strong economic fundamentals drive the US economyforward. In the year to date, investors have pulled $US300 million ($329 million) from Blackrock's iShares China A50 exchange-traded fund (ETF) , an index that tracks the top 50 shares by market capitalisation on the Shanghai or Shenzhen Stock Exchange, amid fears over the state ofthe Chinese financial system and worries about economic growth remaining above 7 per cent. iShares is Blackrock's ETF business. In a visit to Sydney, Blackrock's iShares head ofAsia Pacific Jane Leung said Australian institutional investors, particuiarly banks and insurers, are among those exiting emerging markets since the start of this year. "We are seeing less interest in China globally. Many people feel that China maybe overvalued. So they have been taking money offthe table," she said. Institutional investors have been shifting their funds to chase growth opportunities in the developed countries, chiefly the United States. "Anecdotally, our Australian clients are more interested in seeing how the Chinese economy does and how it will impact Australian mining companies," MsLeungsaid. "There is certainly a feeling that some of the growth in China maY be slowingin the near term -butI believe inthelongterm, manyinvestorsbelieve itis a placeto invesl" In the past month, more than $225 millionhas flowedinto *teiShares US fixed-income ETFs, $300 million

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