The head of Barings' Asia Multi Asset Group, Khiem Do, believes ongoing concern over a Chinese property bubble has created good value in the sector.
Do, who also sits on Baring's strategic policy group, says although there is a property bubble forming in China, it is only at the top end of the market and is not linked with GDP growth.
He says while policies introduced by the Government to prevent a bubble have led to dramatic fall in the volume of sales, prices have remained static.
He believes property valuations will ultimately fall due to a shortage of buyers, but says the effect will be negligible.
"The property stocks in China had been losing a lot of value; the price has gone down a lot over the last 12 months or so, and we see opportunity in that," Do says.
"That top end of the property market is heading towards a bubble and that is why the Government has come up with policies to hold the rise in that part of the sector immediately.
"However, I do think they will fall because if there is a lack of buyers it means the prices will have to correct. It has risen by between 70%-80% over the last 18 months so it can correct by 20% without causing a problem.
"I do not think it will impact on GDP, because this is the playground of the rich. A 20% fall in the value of your second or third home does not mean a great deal."
