Around 60% of Middle Eastern wealth funds are willing to increase their allocations to Chinese assets over the next five years, according to the latest Invesco global sovereign asset management study.

The remaining 40% will continue to maintain their investment.

Sovereign funds in Asia-Pacific and Africa will be more proactive, with 88% and 80%, respectively, expressing intentions to increase their investments. About 73% of North American funds are open to investing in China.

The global funds cited several factors when justifying their increased investments in China, with 71% identifying strong returns made in China, 63% wanting to diversify, and 45% citing increased market access for foreign investors.

The most attractive sectors for investment in China were digital technology and software, advanced manufacturing and automation, and clean energy and green technology, the Invesco report said.

Martin Franc, CEO of Asia ex-Japan, Invesco, said that respondents approved of supportive policies from Beijing and believed the market was a place where innovative technologies could blossom.

“Their growth story has only a limited amount to do with what happens in the West. So, it is phenomenal for political and capital diversification,” the study reported quoting an unnamed Middle East-based sovereign wealth fund.

The study polled 141 senior investment professionals, including chief investment officers, heads of asset classes, and portfolio strategists, from 83 sovereign wealth funds and 58 central banks worldwide, who collectively managed $27 trillion in assets.

(Editing by Seban Scaria seban.scaria@lseg.com )