Chinese and Asian markets good for long-term growth
Problems in credit markets will not have a negative effect on long-term growth in Chinese and Asian markets, according to Baring Asset Management.
William Fong, manager of the Baring China Growth Fund, said that valuations in China have become more attractive following the recent market correction and that both medium and long-term prospects for the Chinese economy are positive.
According to Fong, despite a reduction in risk appetite on the part of investors, there are opportunities for investors prepared to take a medium to long-term view.
Fong continued: “Economic fundamentals in the region should act as a strong buffer against the events in the US credit markets. Domestic consumption is in full bloom, the Renminbi is continuing to appreciate and we believe that secular growth and improving corporate governance will drive a re-rating.”