Andrew Clifford on why you need to be investing in China today
In Platinum Asset Management’s recent address to advisors, CIO Andrew Clifford highlighted why he believes “you really want to be and need to be investing in China today… as income levels rise, people are simply spending money on themselves as we would here.” Clifford explains sector by sector the companies they own in China to take advantage of this foreseen growth in consumer discretionary income. “At the moment the car fleet (in China) is growing at 13-14% per year” and a company like PICC, the leading general insurance company in the country, is well positioned to take advantage. “To give you a sense of its scale, it’s three times the size of QBE in terms of the premiums they write each year. We believe it will grow at 15% for some time to come….and what do we have to pay for this business?.....11 times earnings today, we think that’s extraordinary buying.” Watch the video below from the 19-minute point for insights into China and more sector analysis.