The first South China Morning Post Hong Kong Fund Manager Survey revealed more than four out of five respondents were already overweight in equities, and almost two-thirds of the fund managers plan to continue to increase their weightings in equities traded in Hong Kong in the next three months, in particular in banking, internet and power stocks.
Those who took part in the survey, conducted between February 28 and March 7, were asset managers from 10 leading international fund management companies.
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They were Allianz Global Investors, Baring Asset Management, BNP Paribas Investment Partners, Henderson Global Investors, HSBC Global Asset Management, Invesco, JPMorgan Asset Management, Manulife, PineBridge and State Street Global Advisors.
Agnes Deng, the head of Hong Kong China equities at Barings in Hong Kong, said: "The global trend for capital to shift from bonds to equities is still very clear. I am feeling more comfortable with the current valuation of the Hang Seng Index after the first-quarter correction. We are likely to have a valuation-supported rebound in April and May."
The respondents to the survey said the downside risks for the Hang Seng Index in the coming quarter were the potential for disappointing mainland economic figures.
Seven out of 10 fund managers surveyed said they believed economic growth on the mainland would be more than 8% in the second quarter.
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