Fidelity International’s Portfolio Managers - 2010 Mid-Year Outlook on China
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Hong Kong, 29 July 2010 – China remains one of the best investment opportunities of the next decade, according to Fidelity International’s team of China portfolio managers - Anthony Bolton, Stephen Ma, Martha Wang and Teera Chanpongsang.
Fidelity International’s team of portfolio managers specializing in China has been investing in China for the past 16 years and now includes Anthony Bolton, President of Investments, who is based in Hong Kong and manages a UK listed fund.
Anthony Bolton, President of Investment, Fidelity International:
“China’s domestic economy will show better growth than most other regions in the world. My enthusiasm for China after three months in the region is unstinted. I believe many areas in China will show rapid progress over the next 10 years.”
Teera Chanpongsang, portfolio manager, Fidelity Funds - Emerging Asia Fund:
“Corporate China should derive healthy earnings growth in coming years from the country’s structural growth drivers of attractive demographics, low penetration of discretionary goods and the need for upgrades to its infrastructure.”
Mr. Chanpongsang also sees domestic consumption as a key driver of future growth in China, as the country that is often portrayed as “the world’s factory” shifts to a more domestic focus.
“The government’s focus is on promoting long-term sustainable growth in the economy by boosting domestic consumption and reducing dependence on exports. This is being done by providing incentives to buy consumer products and increasing employment opportunities in the interior parts of China.”
Martha Wang, portfolio manager, Fidelity Funds - China Focus Fund:
“There are a number of long-term secular dynamics that I see as positive towards China. As China becomes wealthier, many opportunities will rise from consumption growth as people pursue different lifestyles.”
“Urbanisation of the inland areas is another key factor supporting consumption growth,” Ms. Wang added. “The considerable income and consumption gap between China’s urban and rural areas signal the growth potential. Another important trend is industrial upgrading and consolidation shifting China’s labour-intensive industries to other industries offering new opportunities.”
“The recent move to allow Yuan fluctuation is in alignment with the objective of promoting consumption because it makes imported goods cheaper. In addition, rising wages put more money in the hands of consumers.”
Stephen Ma, portfolio manager, Fidelity Funds - China Opportunities Fund:
“China’s domestic consumption is a multi-year investment theme propelling China’s consumer sectors as well as the broader economy, as the country continues to experience continued urbanisation and increases in income levels.”
“The recent developments in China, in particular the recent RMB reform and acceleration in wage inflation at lower-end income bracket groups, are major positives that will help China to refocus its growth from an export-driven economy to a domestic-driven one in the long-term, providing further support to the consumption theme,” said Mr. Ma.
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About Fidelity International
Fidelity International is an affiliate but separate company to Fidelity Investments and provides investment products and services to individuals and institutional investors outside of the Americas. Fidelity International has been in Asia for 41 years with offices in Japan, Korea, Australia, Hong Kong, Taiwan, Singapore, China. Fidelity International manages US$215.9billion Assets Under Management (as at 31 March 2010), has over 6 million customer holdings and manages 937 funds. Fidelity International has one of the largest proprietary research teams in the world, providing insights into around 98% of the world's stock markets (as measured by the Morgan Stanley Capital International World Index, 4 June 2010). In Hong Kong, Fidelity is the largest provider of the ORSO (Occupational Retirement Schemes Ordinance) Member Choice Defined Contribution Scheme and is also one of the top ten MPF (Mandatory Provident Fund) scheme providers in Hong Kong.
Tel: 852 2629 2800
Tel: 852 2629 2800
.Source: Towers Watson Manager Watch, as at 31 March 2010.
.Source: Towers Watson MPF Performance Book, as at 31 March 2010.
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