Despite negative headlines surrounding China’s economic growth, bad debts and shadow banking system, Matthew Vaight, emerging markets fund manager at M&G Investments, is confident on China. He was recently quoted by FE Trustnet as saying:
“Against this backdrop we think there are opportunities in China as plenty of companies are priced with a crisis in mind. We believe there will be opportunities arising from the fact that China’s economy is in transition… The old model relied on low-cost manufacturing, but China is no longer a cheap place to manufacture as rising wages are eroding its competitiveness. We are excited by the number of companies that are adjusting to this challenge… We see firms moving up the value chain and focusing on high-quality, sophisticated products. Many more firms are investing in research and development and brand recognition. By focusing on innovation and quality, Chinese firms can become globally competitive.”
Vaight also cited Greatview Aseptic Packaging Company Ltd (HKG: 0468), which manufactures bacteria-resistant drinks cartons, as a Chinese stock that is attempting to build a global presence with innovative products after achieving success in the local market. Greatview Aseptic Packaging Company Ltd is the second largest supplier of roll-fed aseptic packaging material globally and company operates in multiple locations across Asia, Europe, North and South America.
To read the whole article, Buy back into Asia – but don’t follow the herd, say experts, go to the website of FE Trustnet.
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