PCFM: Focus on China’s fundamentals rather than coronavirus
Investors should focus on China’s investment fundamentals, like the continued growth of the middle class and the rapid growth of urbanisation, rather than on the short-term impact of the coronavirus, according to Premium China Funds Management’s (PCFM) chief executive and chief investment specialist, Jonathan Wu.
Although Wu admitted the virus had caused a lot of uncertainty for investors, their view on the long-term exposures to China should remain unaffected as the circumstances did not significantly alter the fundamentals.
“The seriousness of the coronavirus should not be underestimated but nor should investors lose sight of the fundamentals which have seen China grow to become the world’s second-largest economy or the manner in which this has propelled millions of people out of poverty,” Wu said.
“Consumer spending is still low in China but all the data points to it rising significantly with consequent benefits for both locally-based and international companies with the ability to meet that demand.
“As investors we are focused on the fundamentals and are closely watching our favoured consumer names with a view to increasing positions,” Wu said.
AUTHOR
Oksana Patron
Recommended for you
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
One of Metrics’ four managing partners is to step back from the business next year, having worked at the firm since its inception in 2011.
VanEck’s Bitcoin ETF has amassed $290 million in assets in its first year, but the ETF provider has said financial advisers remain skeptical of the asset.
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
