Invesco Perpetual expects short-term China volatility

Invesco Perpetual's Samantha Ho is ready to take profits on holdings in her Hong Kong & China fund in the coming months, expecting the region to see some short-term volatility.

With Chinese equities surging more than 50% since its March low, Ho believes the markets could see near-term uncertainly following "meaningful" recent inflows. However, the manager says the medium-term secular outlook remains promising, especially when compared to developed markets. Ho expects China to also see a second wave of government stimulus measures, aimed at boosting domestic consumption. She believes the Chinese state is committed to promoting internal private expenditure through measures like providing vouchers to low-income families and subsidising rural communities. ...