Exotics From Nomura: Domestic China Investors Survey

Nomura published a strategy report on China today with, in my view, rather exotic findings of survey of China domestic fund managers. Here are the excerpts:

Over a two-day seminar, we asked China investors to fill in, anonymously, a questionnaire on the macro issues of the day. Our 13 questions covered a range of asset classes and financial markets. We have collated the results of more than 50% of
survey replies and present our findings inside. Investors remain very bullish on China-A shares and don't foresee much change in the monetary policy in the short term. In terms of sectors, they remain bullish on banks, insurance, and property and bearish on airlines. They see China curbing loan growth as the main risk for 2010F.

and some key bullet points:

• Investors remain extremely bearish on the US dollar...
• …with no-one expecting any change in the US interest rates
• The US will still remain the reserve currency
• Domestic investors regarded their own market (A-share market) as offering the best returns, with Japan and India being the least favoured
• Consensus is very bullish on Chinese growth
• There are few expectations of rate hikes this year
• Investors see no change to the HK peg…
• ...nor in the price of gold
• Investors expect double-digit gains on the Hang Seng until year end
• …and the same for the A-share market..
• …the same for the property market
• Banks, insurance and property are the most favoured sectors while airlines is the least favoured
• The biggest risk is China curbing loan growth

And here is an alternative view on Chinese property, and consequently financial sector ...

In the meanwhile many equity markets around the globe are testing new highs this year.