Bolton warns on fallout from ‘land trading' profits

Fidelity manager fears company profits inflated by land sales, not rising revenues

Fidelity’s Anthony Bolton has suggested some Chinese companies may have “fudged” profits to reflect gains made on land sales rather than underlying revenues. Speaking at Investment Week’s Senate Investment Conference in Bedfordshire last week, Bolton said prices will come down over the next 12 to 18 months, adding equities could be hit as land trading has inflated returns. “I am sure some of the profits out there have come from land trading and land dealing. Much more so in the case of some state-owned enterprises, but I am sure some private companies have done this too,” he said. ...