Invesco Perpetual's Parks: Why we are overweight China but not bullish on its economy

State-owned sector an issue

We are often asked why we are overweight China, relative to the benchmark index, when we are not very bullish on the Chinese economy.

The short answer is that we are able to find Chinese companies which we believe can grow despite the weak economic outlook. So far this year, we have seen an easing of investor concerns towards China, which has helped support a relief rally in many of our markets. China Q3 GDP growth on target at 6.7% but property concerns grow However, questions remain over the strength of the recovery as well as the longer-term outlook for growth. Monetary policy easing and fiscal stimulus measures have triggered a rebound in property and construction investment, but inefficient companies rema...