FUND managers are picking Chinese industrial stocks and holding volatile tech shares, betting a two-year-old equities rally can withstand an economic rough patch, as valuations and steady returns lure foreign investors back.

China’s blue-chip index CSI 300 has matched the S&P 500 with a roughly 16% year-to-date gain, while Hong Kong’s Hang Seng – up about 30% – is on course for its most substantial annual rise since 2017.