The Chinese economy will slow due to a deteriorating export environment and concerns about recession in the US and Europe, according to Mike Hanbury Williams, fund manager at F&C Investments.

He predicted that the Chinese economy will record 8 or 9% GDP growth this year, compared to 10%, as recorded in the past, with short-term challenges posed by rising food prices.

Hanbury-Williams added that in terms of China’s investment opportunities, domestic-orientated stocks were worth considering over export-related ones. He said: “We remain exposed to both hard and soft commodities but we have done some small trading between various different commodities and also between the different stages of the chain in the commodities cycle.

“Within soft commodities, we have taken the top of our palm oil exposure when we saw prices spike in the first quarter and moved that money into companies that are looking at crop protection.”