Tulloch: China will struggle to avert slowdown

First State's star fund manager Angus Tulloch has warned the Chinese authorities will struggle to stop the country's GDP contracting as the repercussions from stimulus measures come home to roost.

Tulloch, who heads up the group's top performing £5.7bn Asia Pacific Leaders fund, said China will find it difficult to keep GDP running at its current level of 9.1% in years to come, as the economy faces the fallout from the credit binge over the last three years. "We remain somewhat sceptical that the Chinese government can continue to smooth the economic cycle over the longer haul," Tulloch said. "The credit stimulus provided by China's monetary authority in 2008 has undoubtedly led to some unwelcome side-effects in the allocation of too much credit to the property sector and, more...