A CHINESE money manager whose stock fund has climbed 52 percent in 2020 said May is no time to shy away from equities.

Wang Rongxin, general manager of Beijing-based Rosin Asset Management Corp., thinks a buying window is at hand. Key annual meetings of the country’s top legislature are set to start in two weeks, and he said possible policies to emerge should fuel China’s economic recovery following pandemic-related lockdowns.

The Zhonggang Yinrun Private Equity Investment Fund, which launched in August, has benefited so far this year from bets in 5G, electric vehicles and pharmaceuticals paying off. It has averaged about a 75 percent allocation in stocks, but he said the fund could top 90 percent this month.

“There are dozens of stocks currently on my radar with relatively higher certainty” in areas from infrastructure to the digital economy, said Wang.

“Market valuations are close to the bottom, so I am gradually increasing positions. If the market drops 5 percent or more, I will buy stocks decisively.”

China’s stock market, the only one among the world’s biggest to have not fallen into bear territory this year, has also held up following the Labor Day holiday.

Investors have shrugged off escalating tensions between the United States and China, instead focusing on the prospect of more stimulus from the government later this month that could put a charge in China’s financial markets.

One prime target for Wang is infrastructure, long a home for stimulus spending in China. A trial of real estate investment trusts was announced two weeks ago, geared toward allowing Chinese to help fund infrastructure projects. And from the government, “there is still a lot of room for fiscal policy” to be put toward infrastructure, he said. (SD-Agencies)