Chinese sovereign wealth funds should dump US stocks, report says

China's SWFs are sensitive to reduced US retail spend on consumer goods

The Edhec-Risk Institute in Singapore has recommended that Chinese sovereign entities hold no exposure to the stocks of US retail companies or that they short such stocks to hedge against appreciation of the renminbi as well as hedging a fall in US consumer demand. In its paper, 'An integrated approach to sovereign wealth risk management', the institute outlines a model that takes into account assets and liabilities of a sovereign sponsor to achieve the optimum investment allocation for sover

To continue reading...