Koos Bekker is not the only person with a Tencent headache
When it comes to tech stocks, Chinese investors are also discovering there can be too much of a good thing
Taipei/Shanghai — When it comes to China’s biggest technology stocks, some Chinese investors are also finding there can be too much of a good thing. Take Shi Bin, a portfolio manager at UBS Asset Management in Hong Kong. One of the top stocks in his UBS (Lux) China Opportunity equity fund is Tencent Holdings, which has soared 70% this year. So far, so good. But it’s hard competing with the likes of the MSCI China index because he is hobbled by regulations that restrict funds’ allocation in any single stock to 10%. Tencent’s MSCI China weighting is 16.3%. "We were lucky to have beaten the index," Shi said in an interview during a visit to Taipei. "It would be a real headache for us if Tencent shares continue to surge, as it’ll be difficult to find better bets." Shi has almost maxed out on his Tencent allocation, which had a 9.9% weighting in his fund as of the end of July. He is also heavy on fellow internet giant Alibaba Group Holding, with a 9.6% allocation. The two companies have ...
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