The Chinese consumer story was the theme of 2015, with Bellamys and Blackmores up 715% and 534% respectively. It’s been a very different story this year as regulations tightened up and results disappointed, Bellamys is off 17%, while Blackmores has fallen a massive 46.5%. So, does that mean these stocks are a buying opportunity for value investors? Charles Leyland, Managing Director at Leyland Private Asset Management, thinks not. “It was faddish, it’s come off a bit. We saw after the dot-com boom that stocks that fell in half, they kept falling. If you go trying to catch a falling knife, you could lose more money.” So how can investors take advantage of the rising Chinese consumer? “The way to play the China story is through tourism… Stocks like Sealink, which own ferries in Sydney. That’s the way I’d be getting exposure to China.” Watch the video below for his thoughts on Sealink.
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.