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.

ON EMERGING MARKETS

Henderson's Charlie Awdry expects China will raise interest rates three more times this year to quell soaring inflation.

Allianz's Michael Konstantinov is backing Chinese GDP growth to remain around 8%-9% for the next few years despite expectations the country's central bank will act to tackle inflation.

London's leading share index edged up this morning while other global markets were cautious on fears China will hike interest rates to stem soaring inflation.

Chinese growth raced ahead 9.7% in the first quarter of 2011, while inflation hit its highest level since 2008.

The Chinese economy grew a faster-than-expected 9.7% in Q1 and its inflation rose to the highest level in almost three years despite government attempts to slow surging growth.

Chinese protectionist measures and the developed world's debt levels are major headwinds for European investors, says Alexander Darwall, manager of the £1.7bn Jupiter European fund.