Hedge funds showed a preference towards Asian emerging markets in the week of February 15th, investing heavily in company stocks in China, Korea, Taiwan, and India. This trend occurred just before China reduced its benchmark mortgage rate, according to research conducted by Goldman Sachs.
In a note published on Friday and shared with Reuters on Monday, Goldman Sachs reported that Asia was the region with the most net-bought by hedge funds tracked by its prime brokerage, meaning that buyers outweighed sellers. On Tuesday, China’s central bank announced the largest-ever reduction in the benchmark mortgage rate, lowering the five-year loan prime rate to 3.95 percent from 4.20 percent.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.