China's equity rally will run into 2018, says Value Partners

China_growthAn equity rally that has caused some Chinese indices to rise by half this year will last into 2018, said an asset manager. The rally has been driven by “structural instead of cyclical factors”, according to Chung Man Wing, investment director of Hong Kong-based Value Partners. “China has been making further progress to deliver quality and sustainable growth via reforms in the services sector and state-owned enterprises, as well as financial deleveraging,” he said. As the Chinese economy becomes more efficient with less reliance on debt, international investors will increase their allocations to Chinese stocks, he said, “particularly those listed in Hong Kong, which is a freely accessible market”. Value Partners had $17 billion under management at the end of October. ©2017 funds global asia

Executive Interviews

INTERVIEW: Joining the family

Dec 12, 2017

An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

INTERVIEW: ‘It cannot be excluded’

Sep 27, 2017

Bond Connect’s launch means China’s onshore bond markets are more accessible than ever. Mo Ji, an economist at amundi, tells George Mitton why that matters.

Roundtables

REAL ESTATE ROUNDTABLE: In search of a home

Jul 17, 2017

From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.

ROUNDTABLE: More transparency, less certainty

Mar 20, 2017

Our panel discussed exchange-traded funds, regulatory overdrive and whether mutual fund recognition has been a failure. Chaired by George Mitton in Hong Kong.