Fund managers see merit in China’s deeply discounted stocks

Positive signs: Shoppers walk through a retail district in Beijing. China's economy showed more signs of reviving in October as retail sales and manufacturing picked up. - AP

AFTER months of steering clear of China, global asset managers and hedge funds say they are seeing tentative signs of a recovery on the mainland and value in the country’s depressed stock markets.

While foreign inflows only point to a tepid commitment from these funds so far, the rhetoric is changing as asset managers point to volatility in US stocks and sudden policy impetus in China as reasons to return to the country.