Money managers to boost A-share holdings

Individual investors are not the only ones pouring cash into Chinese stocks after they surged faster than any other market worldwide.

Five of the 11 professional money managers from the Chinese mainland, Hong Kong and Taiwan surveyed by Bloomberg from April 8 to Thursday said they plan to boost holdings of yuan-denominated A shares this quarter, while four will maintain positions and just two will reduce their stakes. Technology, consumer, healthcare and financial shares were preferred industries among the managers, who oversee a combined $41 billion.

The responses show the Shanghai Composite Index's 99 percent surge over the past year, driven by a record pace of new stock-account openings, still has support outside the Chinese individuals who comprise at least 80 percent of trading at the Shanghai and Shenzhen stock exchanges. Institutional investors are betting that sustained inflows, interest rate cuts and prospects for an improving economy will keep the rally going.