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

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