Tulloch braces for China slump

First State Asia Pacific Leaders manager runs chunky underweight to Chinese equities ahead of expected pull-back.

First State’s Asian fund star Angus Tulloch has warned investors need to brace themselves for falls in Chinese equities in the near term. The manager of the £5.7bn Asia Pacific Leaders fund is keeping his direct country exposure and commodities weighting at just 6% and 5% respectively, well below the benchmark, amid concerns over headwinds facing the country’s stock market. “When investing in EM, you should always remember you get two steps forward and one step back. Now, I would think a step back is due, especially because of China. “The main reservation with China is the assumpti...