Henderson's Awdry on Chinese inflation's downward spiral

Henderson's Charlie Awdry expects Chinese inflation to cool in Q4 and fall towards 5%, allowing the authorities flexibility to ease monetary policy and boost shares.

Awdry, who heads up the group's £531m China Opportunities fund, said September's 6.1% CPI figure was ‘disappointing' but he expected it to fall further in the next few months towards 5%. A fall would free up the authorities to loosen monetary policy in order to stimulate economic growth, Awdry said. "China's trade surplus is narrowing due to the slowdown in world growth and the PMI data throughout the year has been indicating a softening in growth - so this is no great surprise," said Awdry. "I think inflation will come down in the last quarter towards 5%, although the government w...