(Bloomberg) -- Money managers are scaling back their bearish stance on China, adding technology and consumer stocks to their portfolios amid a four-month-long rally, according to an HSBC Holdings Plc survey.

Mainland China currently accounts for almost 28% of portfolios across nearly 300 actively-managed emerging-market funds overseeing a combined $617 billion, the survey shows. That’s up from 22.5% a year earlier, though the group as a whole remains 340 basis points underweight.

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“Demand for mainland China has improved since April, with the underweight narrowing by about 60 basis points,” the bank’s head of global equity strategy Alastair Pinder and analyst Pankaj Agarwala wrote in a report Tuesday.

The shift comes amid a strong year for Chinese equities, with stocks listed on the Shanghai or Shenzhen Stock Exchanges poised for their fourth straight month of gains. China’s tech shares got a boost at the start of 2025 thanks to the nation’s progress in generative artificial intelligence. Investors are also getting more confident about China’s ability to weather US President Donald Trump’s tariffs as officials continue to negotiate.

Investors surveyed by HSBC boosted their allocations to shares of Alibaba Group, Xiaomi and BYD. Alibaba is among the biggest contributors for gains in a benchmark emerging-market index this year.

Elsewhere, Latin America remains a consensus overweight among EM stock pickers, with MercadoLibre among favored picks. Investors are also showing renewed interest in South Korea following its June elections, while paring back positions in Poland after a strong year-to-date rally.

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