Fidelity International, senior fund manager Anthony Bolton earlier this year from retirement back to work, manage Fidelity China Special Situations Fund. He found that small and medium enterprises in China with investment value.
The so-called SMEs, referring to the market value of not more than 50 billion company. Bolton said that Chinese SMEs often have good growth potential, but its valuation is lower than the Western SMEs.
Fidelity China Fund is a closed special situation funds, can invest in a series of assets, including equities, derivatives and high yield bonds. Most positions are the stocks, funds about 39% invested in Hong Kong equities, 13% U.S. stocks, 12% of China’s A shares and B shares, and another 7.2% in the stock market to invest in other areas.
With the global economic slowdown and China’s growth remains relatively strong, investment opportunities in China’s stock market to foreign investors may become increasingly attractive. Bolton said that with the rapid decline occurred after the loss of strength of economic recovery, recent macroeconomic indicators point to slower global growth.
But he said that while the tight end last year, the process also caused the Chinese economy is slowing down, but its growth rate still far higher than developed markets; in a low growth environment, China experienced relatively rapid growth, is on the international investors to release more and more attractive.
Last year, China’s stock market has remained weak after a strong rally, the benchmark Shanghai Composite Index fell by about 25% this year, the Hong Kong Hang Seng Index fell about 8% this year.
Bolton also said that China is steadily increasing in population, rapid growth stage of consumption, it is a very good investment opportunities.
Compared to other Asian countries, China, consumer spending share of GDP is relatively low. With China’s growing middle class come up with more money for the purchase of brand clothing, food, cars and other goods, retail and service sectors are rapidly developing.
Bolton preference consumer industry enterprises, such as retail, hotels, mobile phones and media companies. He also shares a greater financial discount, appliance dealers, oil companies and investment companies favor for me. He circumvent the industry include bulk commodities and heavy industry.
John Bolton, Fidelity Management “special situation” funds for 27 years, 2007 to stop doing the daily investment management, earlier this year was called back. In April he moved to Hong Kong from London, and since then has visited more than 150 enterprises in China, and is available with Fidelity China focus fund managers and analysts work closely together.
Bolton said that when he, as Fidelity “special situation fund” manager decided to focus on an emerging market when the Chinese had a greater interest. He said that the world’s center of gravity is moving eastward, he chose China because it is the greatest influence in the world. Bolton first went to China in 2004.