In a L’Agefi TV interview with Lilian Co – portfolio manager for the Strategic China Panda Fund – discussed the prospect of Chinese equities, which she says are “dirt cheap,” in light of the country’s slowing growth.
On the subject of China’s rising PMI, Lilian says « this is a comfort to the markets as it helps show that the government’s target of stable, sustainable 7.5% growth is attainable. »
Lilian observes that China is “no longer a macro call,” with factors such as ongoing market reform opening up a wealth of sector-specific opportunities.
The interview concludes with a question on the implications of the impending direct link between the Hong Kong and Shanghai stock markets; Lilian says « it will bring plenty of scope for arbitrage for foreign investors, as many well established Shanghai-listed brands are trading at very low P/E ratios by international standards. »