Amundi Eases China Bets, Eyes Safer Plays on Valuation Concern

Amundi SA has largely cashed out of China’s September equity rally, reallocating more of its holdings to dividend stocks amid lingering doubts about the country’s economic outlook.

The European firm, which manages €2.3 trillion ($2.7 trillion) in assets, has trimmed positions in “overvalued” Chinese stocks, while selectively increasing exposure to onshore A-shares over Hong Kong-listed equities given their valuation gap, Philippe d’Orgeval, the firm’s deputy group chief investment officer, said in an interview. It has also added dividend-paying stocks through the CSI 300 Dividend Index.

“If there is a correction, that could be an opportunity to add back,” ...