China

Ignis' Diamond Lee believes Asia will have a major inflation problem in the second half of the year, causing markets to become more risk averse.

Schroders' Matthew Dobbs is 6% underweight in financials in the group's £84m Asian Alpha Plus fund as the manager attempts to safeguard against rising interest rates in China.

The Fidelity China Special Situations fund is set to issue further C-Shares worth up to £162m following an overwhelming vote by shareholders in favour of the move.

CHINA CLIMBS THE WALL OF WORRY

Swiss & Global has launched a fund investing in the emerging economies of China, India and Indonesia.

Emerging markets do not face a bubble in the short term as the region shows robust economic fundamentals with little leverage and strong growth, says Michael Hasenstab at Franklin Templeton.

China has raised interest rates for the third time in four months in an attempt to cool inflation.

JOHIM's Asia manager has refuted claims China's inflation rate is out of control and said any volatility resulting from these fears should be treated as a buying opportunity.

Some of the biggest Chinese investors in the investment trust universe have clashed over whether the country is in bubble territory.

Major Chinese cities are trapped in a property bubble after sales transactions soared 60% over the past 18 months, says Gartmore's Charlie Awdry.