Investors resist China bargains despite easing inflation fears

Asia fund managers have mixed views on the timing of buying opportunities in China despite a consensus view inflation has peaked, according to Standard & Poor's.

Although China was one of the worst performing markets over the year, managers have been hesitant to pick up cheap stocks owing to lingering concerns over the short-term macro outlook, S&P research found. S&P Capital IQ fund analyst John Monaghan said although the general view from managers is that inflation has now hit its peak, First State’s Martin Lau is a notable exception. The co-manager of the £556m Greater China Growth and £785m Asia Pacific funds fears inflation could be structurally higher for years to come, depending on how much more money the government prints. He is par...