Market on'honeymoon'

Investors up A-share allocations but underline long-term caution

Institutional investors have increased their allocations for the A-share market as they expect a more stable outlook for the Chinese economy for the rest of the year, given the receding fears of a hard landing.

For instance, back in December, French bank Societe Generale SA had said in its outlook for this year that it will reduce direct exposure to Chinese equities to zero. "We are now changing our stance as we expect the Chinese outlook to be more stable," said Alain Bokobza, SG's head of global asset allocation, in a report.