China stocks look cheap over inflation concerns

ON EMERGING MARKETS

Fidelity's Teera Chanpongsang explains why he favours China even though stock-specific opportunities lie everywhere across emerging Asia.

As economic turmoil continues to plague Europe, emerging Asia offers a host of excellent opportunities. While not immune to troubles further afield, the region’s strong domestic fundamentals and structural growth drivers will likely continue to lead to superior growth. The prospects of a slower recovery in the West should make emerging Asian growth rates look even more attractive to investors. The fall in commodity and oil prices should further ease inflationary pressures, and improve India’s fiscal position due to reduction in import costs. Knowing this should lead to a bias towards ...