(Bloomberg) Asia’s best-performing equity funds of last year have now tumbled to near the bottom of the pile as their bets on China’s green energy rally turn sour.
Asia’s best-performing equity funds of last year have tumbled to near the bottom of the pile as their bets on China’s green energy rally turn sour.
Driving the underperformance are the funds’ holdings in China’s renewable energy and electric vehicles, whose shares have taken a beating after two years of scorching rallies following Beijing’s carbon neutrality goals.
Even as China reaffirms its policy easing stance, monetary tightening elsewhere has pushed up global borrowing costs, spurring a rush out of frothy shares.
The five stock mutual funds that handed investors at least 30 percent in total returns last year have all posted losses
(Bloomberg) What do Asia’s five best-performing $1 billion-plus equity funds for 2021 have in common? They are all betting big on China’s renewables push.
(Sept 29): The global spike in energy prices and China’s power shortage is creating more losers than winners in Asian equities. At least 20 provinces and regions making up more than two-thirds of China’s gross domestic product have announced some form of power cuts. The reasons are two-fold: record high coal prices coupled with a fuel shortage has curbed power generation, while some areas have proactively halted electricity flows to meet emissions and energy intensity goals.
(Bloomberg) The global spike in energy prices and China’s crackdown on power consumption look set to create more losers than winners in Asian equities as production costs surge and output takes a hit.