Quint wrote:Adamski wrote:
China correction continuing today. BG China Growth down 7.1% today, Pacific Horizon down 4.5% today due to growth fears. Steel output slump not a good sign for global growth. However guess this could/may be a good time to get into China as will eventually overtake the US economy, estimate 2028 be the world's largest economy, and stockmarket valuations will eventually reflect that.
Interesting article by Stephen Yiu (Blue Whale Growth) where he believes China has now become uninvestable due to the unpredictable actions of the government. I sold my only China Trust a while ago and have outsourced this decision to my global managers who are better placed to make a call on this.
Can't link the article as I can't remember where it was, may have been the Telegraph.
It was the Telegraph, and here's a link to the 18th September article -
Stephen Yiu, manager of the £980m Blue Whale Growth fund, said Chinese companies were almost uninvestable because of the political risks.
“There has always been some risk, but it has gone into overdrive. Businesses are no longer run for shareholders but for the Chinese Communist Party.
“Even if revenues keep growing, profits could be confiscated and companies could be nationalised. We have nothing invested in China right now. We did own one stock, Tencent, in 2018,” he said.
George Soros, the billionaire hedge fund manager, added his voice to the debate, saying investing in China would prove a “tragic mistake”. He said CCP leader Xi Jinping regarded all private companies as instruments of the one-party state and investors who bought shares would face a rude awakening.
But others said political risk did not mean investors could not make money in China. Ewan Markson-Brown, of Crux Asset Management, said: “Investors have to stay on the right side of Beijing. There could still be worse to come for Chinese shares, but I imagine it will be over by the end of the year and there will be a recovery.”
BlackRock, the world’s largest fund group, said while investors should be mindful of the ongoing political tension, China would always be part of a balanced portfolio.