Hot money may be flowing out of China's markets amid a persistent economic slowdown, but slower-moving institutional money is taking a longer view.
"China is absolutely critical in anyone's portfolio," Adrian Orr, chief executive of the New Zealand Superannuation Fund, a pension fund with around $29.5 billion in assets, told the Milken Institute's Asia Summit last week.
The fund is overweight emerging markets, with around 12 percent invested there, he said.
"A big chunk is China and China exposure. And we're very comfortable with that," he said, noting the fund's long time horizon. "We have no alternative. It's a huge part of the growth engine of the world."
That's despite China's economic data painting a downbeat picture recently. Earlier this week, the preliminary Caixin China purchasing managers index for manufacturing came in at a more than six-year low. Additionally, the Asian Development Bank on Tuesday cut its estimate for China's growth to 6.8 percent for 2015, from a previous forecast of 7.2 percent, and below 2014's 7.3 percent rate.