Managers hold fire on Chinese value traps

Fears Chinese government's stimulus plans are not enough leave managers waiting on the sidelines.

Chinese equities fell to a three and a half year low last week, but leading fund managers say the sell-off has not yet presented the ideal entry point and remain hesitant to snap up shares. Fears additional monetary stimulus will be shelved as property prices soar sent the Shanghai Composite Index down 0.9% to 2,096 last week. This is the lowest since March 2009 and down 14% from its peak in March this year. Investors were hoping for further stimulus after the Chinese government said its target for economic growth in 2012 had fallen from 8% to 7.5%, despite two interest rate cuts and ...