Australian investors have been warned against becoming too bullish about China as a driver for the global economy, with delegates at an industry conference being told that over time China will be supplanted by India.
Speaking at the Superannuation Investment Conference in Queensland, Challenger Financial Services Group head of Australian equities, Peter Greentree expresses a cautious view as to the outlook for China, pointing to the fact that the experience of Australian companies to date has been mixed.
Greentree says Australian businesses looking to succeed in China have seen their strategies undermined by poor implementation, cultural differences and differing legal systems.
“High growth large markets don’t profit for all,” he says.
Meanwhile Westpac global head of economics Bill Evans believes energy and raw material exports will remain a key area of investment with respect to China.
Evans says that even allowing for a slow-down in manufacturing growth in China the demand for energy will continue because energy supplies are so far out of synchronisation with activity levels.
Like Evans, Greentree also deems the best prospects in terms of investment as being in energy, mining services and infrastructure.
