JOHIM's Gibbs: China inflation is not out of control

JOHIM's Asia manager has refuted claims China's inflation rate is out of control and said any volatility resulting from these fears should be treated as a buying opportunity.

Alan Gibbs said the recent rises in inflation seen across Asia has been caused by increasing food prices, but expects this to drop out of the system by end of Q2. He said there have been no other fundamental changes to China’s economy despite nervousness in the region. “There has been talk about overheating, rising inflation rates and unsustainable growth rates in China. The press coverage recently has been extremely negative. “Looking at the average growth rate in China since 1979, it was 9.7% per year while the inflation rate for the same period was 4.8%. “Last year, the growt...