CHINESE fund managers have cut suggested equity exposure for the coming three months to a record low, with risk appetite dampened by yuan depreciation fears, U.S. rate hike uncertainty and economic growth worries, a monthly poll showed.

    They cut their suggested equity allocations for the next three months to 65.0 percent — the lowest since June 2007 when the poll was first conducted — from 66.3 percent a month earlier, according to a poll of eight China-based fund managers conducted last week.

    Meanwhile, the fund managers increased their suggested bond allocation for the coming three months to 15.6 percent from 14.4 percent a month ago, while keeping recommended cash weightings unchanged at 19.4 percent.

    “The biggest risks stem from further yuan depreciation and a Federal Reserve rate hike,” said one of the fund managers polled.

    The bearish outlook from asset managers means China’s stock market downtrend, which started when shares began to crash in mid-June, could continue, although the pace of the decline has slowed following a slew of government support measures.

    The fund managers increased their suggested exposure to tech stocks and consumer-related shares, but slashed holdings in metal and energy shares, according to the poll. (SD-Agencies)