Allocators search for alpha in policy-aligned sectors as China market bifurcates
Institutional investors are narrowing their China focus on domestic semiconductors and industrial policy plays, while rising geopolitical and currency risks fuel a broader "home-shoring" trend across Asia.
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The narrative surrounding institutional capital leaving China does not reflect what many allocators are doing beneath the surface. Instead of reducing exposure across the board, investors are becoming more selective about where they see long-term value and structural growth opportunities.
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