STEPHEN CRANSTON: The China conundrum
You have to go to China to realise its cultural significance – it is not the kind of share you will uncover poring over spreadsheets in the office
Emerging-market funds have rapidly become China-plus funds. Just look at the Coronation Global Emerging Markets (GEM) Fund, which has no less than 36% of its holdings in China, plus a further 3% in Hong Kong. But I am not sure that investing in Chinese megacaps such as Alibaba and Tencent, which are more influenced by the global technology sector than the outlook for China’s industrial shares, is in the spirit of emerging-market investing. Still, it is good to see Suhail Suleman and Gavin Joubert have done their homework and also invested in New Oriental Education and Wuliangye, which manufactures baijiu, a popular local spirit.
You have to go to China to realise its cultural significance — it is not the kind of share you will uncover poring over spreadsheets in the office.