Fund Management
JP Morgan CIT Predicts Continued Growth In Chinese Equities

The managers of the
JP Morgan Chinese Investment Trust, the UK-based investment
trust that focuses on opportunities in Greater China, are
forecasting continued growth in equity markets in 2010.
The firm defines Greater China as China, Hong Kong and Taiwan.
The Chinese economy is expected to expand by around 10 per
cent this year, making China the "backbone of a positive Greater
China theme," JP Morgan said in a statement. This
anticipated growth is faster than any other major
economy, the firm notes.
"We agree that the market may be volatile in the short term as
concerns are raised over the ending of easy monetary policy in
China. However, we believe that market volatility will offer
attractive entry points to investors, as the long term structural
growth of China remains strong. Sectors we currently favour
include financials, property, consumer, technology and
commodities," said
Howard Wang, lead manager.
The managers believe that China's positive transition will go
beyond exports and will be led by domestic consumption and
infrastructure investment, particularly in the rural areas where
wealth volumes are expected to surge.
Just recently, UK's Insynergy Investment launched a new
China-based fund to capitalise on the country's growth prospects,
a move that helps quell industry talk that the country is about
to enter a market bubble due to oversaturation.
"The question they should be asking themselves is not whether
this is necessarily the perfect time to be investing in the
Chinese market, but whether they can afford to be out of China on
any long-term view?"
Spike Hughes, the chief executive and founder of
Insynergy, was quoted as having said in a previous article by
this publication.