Asia

Demographic change in China set to be biggest in world

Improving corporate governance adds to appeal

Fund managers are concerned the Chinese central bank's shock move to devalue its currency could lead to the renminbi depreciating further, sparking heightened capital flight from the region and the rest of Asia.

Paul Niven, manager of the Foreign & Colonial investment trust, explains how beyond the near-term volatility and fears about navigating future interest rate rises, global equities are actually expected to excel.

China has surprised investors by weakening its currency almost 2% lower after a weekend of poor trade data, sending shockwaves through other Asian currency markets.

Despite recent Chinese stock market volatility, the long-term growth outlook for Asia remains very positive, and compared to its emerging market peers the region does not come at a premium.

Pictet Asset Management has upgraded its European exposure to a full overweight, following the resolution of a Greek bailout deal and positive expectations for future earnings.

Rahul Gupta, portfolio manager, Matthews Asia

The board of the Fidelity Japanese Values trust has appointed Nicholas Price, who currently runs a number of the group's Japanese funds, as its new manager.