CHINA’S curbs on the property sector are expected to provide a lift to stocks and bonds as investors shift away from real estate, a top executive at Paris-based fund giant Amundi SA said.

“We are going to see money flowing from real estate investments to capital markets investments,” said Zhong Xiaofeng, chairman of Amundi’s business in the greater China area. “The government is encouraging funds flowing into the financial market.”

The debt crisis at some real estate developers has roiled China’s real estate sector, sending new home prices lower in September and October. That’s reducing demand for condos and other properties, which account for about 75 percent of household wealth in China.

The principle that housing is for living in and not speculation — reiterated by officials last week — will drive more people to public markets, Zhong said. The mutual fund industry is also growing as China’s gross domestic product per capita surpasses US$10,000, a key metric for wealth accumulation, he said.

Still, China’s stock market is under pressure as the world’s second-largest economy slows, thanks in part to the property slump. The Shanghai Shenzhen CSI 300 Index has slipped 2.5 percent this year.

Amundi is planning to more than double assets under management on the Chinese mainland, in Hong Kong and Taiwan by 2025, from its current level of about US$120 billion.

Amundi wants to bolster its China footprint by offering more products, hiring staff and working closely with its joint venture partners. (SD-Agencies)