China to race ahead in Year of the Dog

Chinese_year_of_the_dogA recent setback in global equities does not diminish an optimistic outlook for China in the Year of the Dog. Although the National People’s Congress in March creates the potential for uncertainty, the inclusion of A-shares in the MSCI China index in May should provide a boost to the market, said Sean Taylor, chief investment officer for Asia Pacific at Deutsche Asset Management. “For the year ahead we are still expecting low teen earnings growth for MSCI China – no change here, with the recent market correction offering buy opportunities as valuations look cheaper for global investors,” he said. Josh Crabb, head of Asian equities at Old Mutual Global Investors, said investors were rightly excited to invest in Chinese technology firms in sectors such as artificial intelligence and the internet of things. But he said that “investors need to be selective here and not pay fancy multiples for the dominant players in this area, but look at lesser known names such as Primax Electronics and Advanced Wireless Semiconductor”. “Despite the recent rout in global equities, economic fundamentals look sound,” he added. “Those investors who thought they had missed the rally in Asian equities at the start of the year would do well to pick up some bargains.” ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.

SINGAPORE ROUNDTABLE: Small nation, big ambitions

Apr 18, 2018

Our cross-industry panel discussed fund passporting, robo-advisers and the potential of a new investment structure, the S-Vacc. Chaired by George Mitton in Singapore.