Jupiter's Ehrmann: Chinese inflation has peaked

Chinese inflation has reached a peak, according to Jupiter's Philip Ehrmann, who also believes monetary policy is likely to become more relaxed in the second half of this year.

The manager of the £252m Jupiter China fund said: "China has been caught in the grips of soft commodities price inflation, but inflation appears to have peaked. We see the current monetary policy as being sustained but not tightened too much further. "Over the next six months, we should see inflation coming down and the loosening of bank lending which will be good for the stock market." In terms of overall growth, Ehrmann sees China's share of the global economy doubling over the next two years, however, he thinks investors still see China as a "minority sport". "We still see raw g...