Hugh Young: China lacks quality at company level

Aberdeen's Hugh Young is running a heavy underweight to China as he says bad management is prevalent among mainland Chinese companies.

The group head of equities and manager of the £2.5bn Aberdeen Asia Pacific fund is 12% underweight Chinese companies compared to his benchmark, instead opting to gain exposure to China via companies domiciled in Hong Kong and Singapore. He believes these companies have better corporate governance and could grow around 10%-20% in a good year. “China was one of the worst performing stock markets in Asia last year. Just because the economy grew 10%, does it mean you make money from the stock market? No. You need to do your homework on a company level. “We are very underweight in China, b...