Weighing up a generally gloomier economic outlook, the limited readability of the Chinese market after September’s Politburo meeting, and the local equity market’s recent strong rally after the relaxation of COVID containment measures we decided to tactically trim our overweight in Chinese stocks in our multi-asset portfolios.
We remain overweight since we still see many reasons to be supportive on Chinese equities. 
Our overall portfolio positioning is cautious with a neutral view on equities offset by a favourable view of EUR investment-grade (IG) corporate bonds (see table below). We believe IG bonds are attractive as credit spreads more than compensate for the expected economic downturn.
That said, the European economy appears to be lagging the US, which would favour US assets over euro ones.
Asset class views
Twelve-month, risk-adjusted view; 30 November 2022; source: BNP Paribas Asset Management
 Also see A fresh look at thematic investing (bnpparibas-am.com)
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.