Fundsmith's O'Brien fears bubble in Chinese equities

FEET bought Tencent during Covid sell-off

Fundsmith's Michael O’Brien worries there are "increasing signs of a bubble in Chinese equities", amid ETF inflows and government support for an equity bull market.

After a sharp Covid-19 fall in Chinese equities, some Chinese stockmarkets have rallied by between a quarter and a third as the country has begun to emerge from the pandemic and its economy recovers. Some fund managers focused on the region see signs the rally could continue, but O'Brien, who manages the £289m Fundsmith Emerging Equities Trust (FEET) is less sanguine. Investec: Underperforming Fundsmith shares 'offer significant contrarian value' In FEET's recent half-year report, the manager noted some worries in the emerging market sphere, including strong market performance in A...