The recent tightening of China’s economic policy could present a good opportunity for hedge funds, it has been claimed.
The recent tightening of China’s economic policy could present a good opportunity for hedge funds, it has been claimed.
Charlie Awdry, manager of Gartmore’s China Opportunities Fund, notes that this has taken place against a background of an exuberant domestic asset market, a strengthening economy and signs that the rest of the world is beginning to enter recovery.
He states that recent changes to the reserve requirements for banks and the strong language from authorities have been inspired by the front-loaded lending that has taken place during the beginning of the year.
Mr Awdry asserted: “These measures are akin to the authorities gradually taking their foot off the accelerator.”
Despite this, he claims that the government’s continued pro-growth tone implies that no measures will be taken that risk choking off the country’s expansion.
Earlier this month, BlackRock reported that hedge funds are increasingly looking to Asia, forecasting a strong 2010 for equities.
