Fund managers cut China allocations

Despite expressing confidence in China’s economy, investors have reduced exposure to Chinese equities, finds Bank of America Merrill Lynch’s July fund manager survey. A net 6% of fund managers say they expect a stronger Chinese economy in the coming 12 months, compared to a net 0% last month. Ironically, however, their exposure to the country’s equity market reveals their bearish sentiments. Over the past month, Asia-Pacific investors scaled back their Chinese exposure from net 47…