Global investors pull back from China

Investors are allocating commodities investments in China at a four-year low level mainly because they expect slower economic growth and prolonged low inflation in the country, according to the Bank of America (BofA) Merrill Lynch Fund Manager Survey released Wednesday.

A quarter of the respondents to May's survey said that a hard landing in China and a commodity collapse are their top concerns, an increase from 18 percent in April. Eight percent of fund managers in Japan, the Asia-Pacific rim and global emerging markets expect China's economy to weaken over the next 12 months.

"The survey demonstrates a clear exit from China and assets connected to China - in the shape of commodities and emerging market equities," Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research, said in a news release e-mailed to the Global Times Wednesday.