China trust managers at odds over bubble threat

Some of the biggest Chinese investors in the investment trust universe have clashed over whether the country is in bubble territory.

Stuart Parks, head of Asian equities at Invesco Perpetual, and Howard Wang, head of J.P. Morgan’s Chinese investment trust, both said they could not rule out the possibility of a bubble forming. Parks said loose monetary policy has built up inflationary pressures across Asia. “With liquidity plentiful, and domestic investment options largely limited to real estate and equity markets, the threat of speculation driving the market into bubble territory, particularly in China’s tier one cities, cannot be ignored,” said Parks. Wang added he expects the threat of inflation to ease by Jul...