LONDON :Market volatility and uncertainty over China's indebted property sector is making bank investment chiefs cautious about its assets, amid more general nervousness about broader emerging markets.
"I would take a wait-and-see approach on emerging markets," Credit Suisse global chief investment officer Michael Strobaek told the Reuters annual Investment Outlook Summit.
"I would take a day-by-day, week-by-week approach to China, to see what's unfolding on the default side and the policy side," he said, referring to problems in the country's giant corporate debt sector.
"Only if I see real deep opportunities, I'd go back in."
Willem Sels, Global CIO, Private Banking & Wealth Management, HSBC, said clients needed to take a longer term view on emerging markets after many were hurt by recent volatility.
"We have a neutral view on China, we try to diversify," he said.
"We try to get the confidence of investing in China. We try to align ourselves with what is clear in terms of government policy, and that's the net zero transmission."
Investors can still "find some winners" in China by digging down into areas like green tech and 5G-related businesses where the government was showing significant support, said Mark Haefele, CIO at UBS Global Wealth Management.
(Reporting by Tommy Wilkes, Sujata Rao and Dhara Ranasinghe; Editing by Alexander Smith)