Mansfield Mok, co-manager of the £812m GAM Star China Equity fund, has begun reversing his stance from defensive to growth as share prices discount a bleak outlook.
Mok and co-manager Michael Lai have so far shifted 10% of the fund from defensive names to growth-orientated stocks in the expectation China’s economy will remain robust. They have sold out of a 6% China Mobil holding as well as a 4% position in a property investment trust in favour of good-quality growth stocks. “Growth stocks have derated and, because I am confident in the Chinese economy, these valuations look attractive, especially in consumer staples and discretionary,” said Mok. “When all the fear goes away, fresh money will come back and will bring a positive return for Chi...
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