Goldman Sachs compiled data from its clients, which include hedge funds and other big money managers, for the period between April 7 and April 13. Gross exposure to China, which includes funds' short and long positions, went down 2.6% for this period. While selling China, hedge funds net bought U.S. energy shares at the fastest pace in three months, Goldman Sachs said. The move was driven by a rally in crude oil price this year after Saudi Arabia and its allies in OPEC+ surprised traders by announcing an unexpected cut in their output target at the start of April. The bank noted that last week's U.S. net buying was at a near-record pace for the past five years. (Reporting by Carolina Mandl in New York Editing by Peter Graff)
By Carolina Mandl
NEW YORK, April 17 (Reuters) - Big global money managers
got rid of a high volume of Chinese equities in recent days,
while adding U.S. energy shares to portfolios at a near-record
pace, according to a Goldman Sachs report.
Managers decided to sell Chinese equities amid heightened
geopolitical tensions between the world's second largest economy
and the United States.
"As concerns heightened around geopolitics, Chinese equities
were net sold for the first time in a month, driven by risk
unwinds with long sales outpacing short covers," Goldman Sachs
said, adding investors had sold both offshore and onshore
shares.
Besides geopolitics risks, managers are closely watching
China's economic recovery from the COVID-19 slump. The MSCI
Index is up 9.6% this year, after a 22% drop in 2022.
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