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)
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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.
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