SHANGHAI (REUTERS) - Chinese fund managers cut the proportion of their portfolios to be invested in stocks over the next three months to a 6-1/2-year low, a Reuters poll showed, reflecting pessimism after weeks of turbulence in China's equities market.
"It takes a long time to rebuild the confidence of investors," said a fund manager in Shanghai.
Chinese fund managers cut their suggested equity allocations for the next three months to 72.5 per cent - the lowest since February 2009 - from 83.1 per cent, according to a poll of eight China-based fund managers conducted this week.
Funds increased their suggested bond allocation to 9.4 per cent from 6.4 per cent a month ago, and raised cash weightings to 18.1 per cent from 10.5 per cent in June.
China's stock market has plunged since mid-June, and is still struggling to find its feet, despite a slew of government measures to support the market.
Some fund managers still believe that stocks will be propped up by the bailout while others reckon that the government will withdraw from the market one day. They think the stock market has its own logic and most stock valuations remain high.