Jupiter's Teverson: Our fears over China's debt burden

More risky than political problems

While North Korea is naturally an area of concern for investors in the current climate, it is important to note that the country has managed to generate very worrying headlines almost every year of the past decade.

For investors, reacting to these negative headlines, or avoiding opportunities in the region because of them, would have made a significant dent in their returns over that time.  We view China's debt burden as a much more significant risk than any political concern, including North Korea. While China remains an interesting market that offers a number of strong structural growth opportunities for stockpickers, corporate debt there has continued to grow rapidly in recent years and it seems almost inevitable this will lead to asset quality problems for the banks in future.  Should we ...