China

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.

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.