(Yicai Global) April 26 -- Global investors are tending to increase their allocation to China's stock market, according to the chairman of US investment management giant Neuberger Berman, amid better-than-expected economic growth prospects.

China is targeting economic growth of around 5 percent this year despite geopolitical uncertainties, and the actual figure could be higher, George Walker said in an interview with Yicai Global.

“It’s hard to be a global investor and ignore China, given its size, growth, how important it is in the context of every value chain,” noted Walker, who is also Neuberger Berman’s chief executive.

The geopolitical situation will likely lead to fewer private equity investments in China in the near term, Walker said, adding that “from an uncertainty perspective, it’s quite hard to make a 15-year commitment. It’s easier to invest in marketable securities.”

Leading Western institutional investors will allocate more capital to China via the securities market, whereas they were more focused on private equity previously, he said.

Neuberger Berman Fund Management China was approved by the China Securities Regulatory Commission last November, becoming only the second foreign wholly-owned public fund in the Chinese mainland. The Shanghai-based unit issued its first fixed-income product last month, raising around USD600 million. 

Having the opportunity to work for Chinese retail clients is exciting, according to Walker. Neuberger Berman China will open an equity fund soon and more diversified products in the future, he added.

Founded in 1939, Neuberger Berman has offices in 39 cities across 26 countries. The New York-based firm has USD436 billion of assets under management, with USD322 billion in public markets and USD114 billion in private markets, according to its website.

Editor: Martin Kadiev