China

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.

Inflation will not be a serious problem in China in the second half of this year as the economy begins to cool, said Goldman Sachs' Jim O'Neill.

Consumer prices inflation in China eased to 5.3% in April, down from a three-year high of 5.4% recorded the previous month.

In March China published its 12th five-year plan. The word ‘plan' has been adjusted to take into account the growing role of the private sector in economic growth.

Neptune manager believes unpredictable energy prices pose near-term inflation problem

CURRENCIES

CHALLENGES IN CHINA

Allianz's Michael Konstantinov is reversing the bias towards Russia and energy stocks he introduced in November last year to shift back into China, Brazil and India.

China's property bubble is set to burst this year, triggering a 30% fall in values, Aberdeen's Hugh Young said, echoing last week's warning from Anthony Bolton the sector is overheating.

China has the economic scale, the financial firepower and world influence that should be the envy of most developed markets, says Neptune manager Douglas Turnbull.