Depressed China market provides buying opportunities in ‘bear' year

ON ASIA

Martin Currie's James Chong discusses the positive outlook for the China economy.

Last month, China moved to the year of the rabbit. But in the Chinese equity markets, the most emblematic animal has been the bear. In recent months, investors have fretted over high inflation and monetary tightening. And that has now moved beyond administrative measures to more concrete steps, with three rate rises in the past four months. Developments in the wider world have not helped. Unrest in the Middle East has put pressure on fuel prices, as well as unsettling investors through speculation a ‘jasmine revolution’ may spread to Chin, and the tragedy unfolding in Japan has heightene...