HONG KONG, June 9 Reuters Man GLG, the discretionary investment unit of the world39;s largest publicly traded hedge fund, has gone underweight on China after cutting holdings there since January, while pursuing opportunities such as India and AI, a senior fund manager said.

As China39;s recovery prospects fade, dashing the high hopes that followed last year39;s postpandemic reopening, the unit of Man Group is finding it hard to spot longterm, highgrowth China stocks worth investing in, said Andrew Swan, Man GLG39;s head of Asia equities excluding Japan.

It39;s a bit tricky to find ideas, Swan said in a phone interview from his Sydney office this week.

Fundamentally, India surprises positively and China surprises negatively in our view, so naturally investors will take more money out of China and put it into India, he said.

Swan, whose comments marked a sharp contrast with the widespread optimism of just six months ago, said Man GLG with 26 billion in assets under management had increased its exposure to India and Southeast Asia in its Asia exJapan book.

He also pointed to the explosive development of artificial intelligence as the biggest surprise of the year so far, and is adding Taiwan semiconductors to be better positioned for the AI revolution.

Foreign investors have grown disillusioned with the dull postCOVID19 recovery in China39;s economy, the world39;s secondlargest, while worries mount over persistent structural problems such as high unemployment and…