AllianzGI overweight on China equities on earnings strength, innovation

Allianz Global Investors is overweight on Chinese equities, citing strong corporate earnings and investment opportunities spanning sectors from artificial intelligence, robotics and automation to energy storage and medical innovation.

"We are overweight now and maybe before we were more neutral," Michael Krautzberger, chief investment officer for public markets at Allianz Global Investors, told China Perspective during the Annual Conference of Financial Street Forum 2026 in Beijing.

China's energy infrastructure, scientific talent and vast market provide advantages for innovation, with opportunities increasingly extending to small and medium-sized companies, Krautzberger said.

As for China's reforms to make its capital markets more inclusive for smaller businesses, he said they could create more opportunities for international investors while supporting China's growth potential.

Even investors who do not invest directly in smaller companies could find Chinese assets, including fixed income, more attractive if those reforms strengthen the country's innovation capacity and growth prospects, he said.

Wang Yubo contributed to this story.