Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

Hedge funds ‘to benefit from Chinese market growth in 2010’

The Chinese market is expected to experience growth during the next 12 months, it has been revealed.

The Chinese market is expected to experience growth during the next 12 months, it has been revealed.

The JPMorgan Chinese Investment Trust has highlighted the fact that hedge funds should not be put off by the short-term risks, as these will not affect the country’s prospects.

Managers for the group have highlighted the strong potential gains the country’s equity markets are likely to experience in 2010, with predictions placing this expansion rate at almost ten per cent faster than any other nation.

Howard Wang, lead manager, said that concerns about short-term volatility have been raised due to China’s easing of monetary policy, but this could present a good entry point for investors.

He said: “China is undergoing a transition, with growth increasingly led by domestic consumption and infrastructure investment, instead of exports. This is particularly evident in rural China and is the structural theme supporting China’s economy over the medium term.”

The Standard and Poor’s Fund Services report recently called for people to look at the fundamentals of Asian markets, suggesting that macroeconomic factors will be playing a less prominent role in hedge funds’ choices during the next 12 months.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured