Big fund managers' enthusiasm for China stocks cools-survey

HONG KONG, Dec 4 (Reuters) - Asset managers grew more positive about equities in the current quarter, especially in Asia ex-Japan, but sharply curbed their enthusiasm on China as its growth prospects dimmed, a survey showed on Thursday.

Heading into the fourth quarter, 13 fund managers polled by HSBC said they had increased their global equities weighting relative to benchmarks to 50 percent from 22 percent in the prior quarter and kept their bond holdings relatively stable at 50 percent from 44 percent.

Among their regional equity picks, the institutional investors, who altogether manage $3.84 trillion, continued to be most optimistic about Asia-Pacific excluding Japan, though slashed their overweight on Greater China to 25 percent from 63 percent. They did not give sector preferences.

For bonds, fund managers had a 56 percent overweight in global emerging market and high yield fixed income, and increased their overweight in European bonds to 56 percent from 22 percent.

"The long-tem positive view held by fund managers this quarter towards Asia-Pacific and other emerging markets equities shows that they remain confident about the long-term growth opportunities of these regions," said Bonnie Tse, head of HSBC's premier, wealth management and mid-market segment, personal financial services in Asia-Pacific.

"Slowing growth in mainland China, however, is a big concern and has impacted their views towards Greater China."

Recessions spreading throughout the developed world, including in Japan and the United States, have caused China's export-dependent economy to slow sharply in the last few months.

Two indexes based on Chinese manufacturing activity plumbed record lows in November, reports showed on Monday.

The MSCI index of stocks in the Asia-Pacific region .MIAPJ0000PUS outside of Japan hit a five-year low in November and has fallen 59 percent so far this year.

Meanwhile, government bonds have continued a steep rally, pushing down the 10-year U.S. Treasury yield US10YT=RR to the lowest in more than five decades.

The survey of asset managers was conducted in October 2008.

Fund managers participating in the survey included AllianceBernstein, Allianz SE (ALVG.DE), Baring Asset Management, Deutsche Bank (DBKGn.DE), Fidelity Investment Management and Franklin Resources Inc (BEN.N).

Invesco (IVZ.N), Investec Asset Management, JPMorgan Chase & Co's (JPM.N) JF Asset Management, Schroders Plc (SDR.L) and Societe Generale (SOGN.PA) also participated.

(Reporting by Kevin Plumberg; Editing by Kim Coghill)