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BlackRock's Boivin says firm is dipping its toes in Chinese assets amid 'pro-risk' stance despite market jitters

BlackRock Inc.'s Jean Boivin says his firm is "dipping our toes" in Chinese assets amid a tactically "pro-risk" stance, despite recent market jitters.In a note released on Monday, the head of BlackRock Investment Institute and others said they're remaining pro-risk given a broadening economic restart, and that the firm is testing Chinese assets "in the context of very small client allocations." The comments came as the S&P 500 and Nasdaq Composite indexes appeared to be headed for their worst month in almost a year, driven largely by the Fed's desire to taper bond purchases soon and recent concerns about troubled Chinese developer Evergrande Group . Investors pay close attention to New York-based BlackRock's (BLK) views given its enormous size and presence in financial markets as the world's largest money manager. As of the second quarter, BlackRock's assets under management rose to $9.5 trillion, with the firm closing in on a once-unthinkable $10 trillion. BlackRock Investment Institute is the firm's research arm -- helping to inform portfolio managers, who make their own decisions."We believe the path for further gains in risk assets has narrowed after an extended run higher, warranting a selective approach, but we reaffirm our tactical pro-risk stance," according to the note penned by Boivin and others. In a televised interview with Bloomberg News on Monday, Boivin was quoted as saying that the likelihood of easing Covid-19 restrictions in coming months means a "broad market exposure" to Chinese equities should be considered.On Monday, tech shares led the way lower in U.S. stocks, while energy and financials -- sectors that tend to well in a rising-rate environment -- pushed higher. The S&P 500 was down by less than 0.1% for the day, while the Nasdaq was lower by 0.4%. The Dow rose 0.4%.

-Vivien Lou Chen

 

(END) Dow Jones Newswires

09-27-21 1425ET

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