Summit Notebook

Exclusive outtakes from industry leaders

Audio – Double happiness to be buying Chinese stocks

September 4, 2007

r428268771.jpgWhile a mortgage default crisis in the United States provoked a credit crunch and threatens to hurt global economic growth, Chinese stocks have surged. So Howard Wang counts himself as relatively fortunate to be JF Asset Management’s top China fund manager. The MSCI China index has risen more than 40 percent this year, and Wang believes it will rise another 10 percent by the end of December. Wang, who is co-manager of the $744.6 million JF Greater China fund, is upbeat on companies profiting from surging consumer spending, such as retailers, and anything linked with inflation — property firms and insurers. He’s not so keen on telecoms and oil stocks. The risks? Any global slowdown — Wang believes a U.S. interest rate cut by a Federal Reserve chairman tasked with controlling inflation would send a signal that bad times really do lie ahead. Taiwan’s export driven economy would be particularly vulnerable. In mainland China, a domestic danger lurks in the guise of inflation, thanks to climbing food prices. 

To listen to Howard Wang, click here.

 

 

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