Mizuho Asset Management Co. may buy "cheap" Chinese banks and developers because they may outperform in a rebound by the nation's stocks as inflation eases.
The firm, which has a "slightly underweight" allocation for Chinese financial companies, may buy shares of lenders such as Industrial & Commercial Bank of China Ltd., Masahiko Ejiri, a fund manager at the company, said in an interview in his Tokyo office Monday. Mizuho Asset oversees $41 billion, including Hong Kong-listed equities.
"We are relatively more bullish on Chinese stocks now than six months ago," said Ejiri, whose MHAM Asia Open fund has beaten 78 percent of rivals in the past year, according to data compiled by Bloomberg. "We're considering increasing our investments in financials in the short term."
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