Woodford warns 'moth to flame' China investors

Invesco Perpetual head of investment Neil Woodford is warning investors to not get overly carried away by the China growth story, believing the burgeoning country still faces "huge challenges".

Woodford, who runs upwards of £23bn at the Henley-based group, says investors are currently focused too much on China as a bullish, one-way opportunity and are ignoring the threats, both economic and political. "It is the land of opportunity as far as Western investors are concerned and I think there has been a huge focus on the growth rate. The world markets seem to be drawn like moths to a flame in terms of Chinese GDP growth numbers," he says. "All these things have assumed gigantic importance in the minds of investors, because there is this crowded train and they feel they have to...