A bull in a China market

Last week's news that the Chinese economy continued to power through the global economic crisis, with growth of 10.7%, adds weight to those who argue for a greater weighting to the country and emerging markets in general.

However, most investors need little convincing emerging economies offer the potential for strong returns. Writing on page 47 of this issue Mark Mobius points out that in the first 10 months of 2009, emerging markets recorded nearly $67bn in net inflows, nearly 25% more than the record-high $54bn registered in 2007. In the past 15 years, net inflows have totalled more than $145bn. The momentum is clear for all to see. Investors are well aware they should expect a bumpy ride, but the long-term growth story is compelling. The sector is also a great case for active management. Ind...