Henderson's Awdry: Four reasons why I have reintroduced banks to China Opps fund

Looking at the largest, most liquid banks

Henderson Global Investors' Charlie Awdry, manager of the £550m China Opportunities fund, has reintroduced a banking position on the fund for the first time in 18 months, as a number of positives have emerged in the "sector people love to hate".

Awdry said he had been quite vocal about his reasons not to hold banks recently so, as they return to the portfolio, he has explained his reasoning to Investment Week. "A lot of people are concerned about how much debt is held in China," he said. "The fund has done relatively well from avoiding banks and indebted companies and there is still a lot of debt, but incrementally there are some positives coming through." Where are the opportunities in China's 'new' industries? Awdry has added Bank of China and China Construction Bank, and together they now make up 10% of the portfoli...