Why China's A-share market looks attractive

ON ASIA

Investor obsession with China's growth rates and banking system means opportunities in the A-shares market are being missed, argues Herme's Jonathan Pines.

I have been bearish on many defensive companies in the expensive ASEAN region for some time, preferring to focus attention on the unloved northern Asian markets and in particular China. There are always two investor concerns regarding China; an almost obsessive focus on GDP growth numbers and fears over the country’s banking system. Slowing Chinese growth and an erratic interbank rate seem to have heightened investor concerns about these aspects in the last year. While the fund has no exposure to Chinese banks, there are two scenarios that would prove negative for us. Firstly, the ban...