Young: Accounting scandals justify China underweight

Moody's ‘red flag' corporate governance report casts shadow over Chinese companies.

Aberdeen’s Hugh Young said his £2.2bn Asia Pacific fund now has even less appetite for Chinese stocks following a string of accounting scandals among Chinese companies. The report sparked a sell-off in shares and bonds, which came as Fidelity’s star manager Anthony Bolton admitted his portfolio was hit when two of his Chinese holdings were accused of fraud. Bolton, manager of the £647m Fidelity China Special Situations trust, said last week he would tighten due diligence controls on the fund after he “made mistakes” investing in two US-listed Chinese firms embroiled in fraud claims. ...