Why China bears may be wrong

Consumer sector growth in China could bolster the economy and make the country a better long-term investment than it may currently appear, according to fund managers.

Their comments come as fears intensify over a slowdown for the world's second largest economy. China's economy grew 7.5% in the second quarter- its slowest rate in three years, according to the country's official data agency. In mid-June, the World Bank also changed its projection of growth rates in China to 7.7% for 2013, down from an earlier estimate of 8.4%. However, retail spending grew faster than analysts forecast at 13.3% year-on-year over Q2. Sharat Shroff, manager of the Matthews Pacific Tiger fund, said these growth figures should not ring alarm bells for investors. ...