Chinese long term approach is a positive for resources: Christ Stott, CIO, Wilson Asset Management. Resources stocks have underperformed in recent years on the back of fears of China coming to a hard landing and the slowdown of projects in Australia. In particular, companies in the smaller end of the market have suffered from weaker commodity prices. Mining services companies have not been immune seeing large declines in their stock prices on the back of this thematic. Our current view on the mining sector is that select value is starting to emerge. Chinese growth was downgraded in early 2014 with the new regime implementing measures to foster sustainable growth over the longer term, a significant positive for the mining sector in our view.
Please sign in to comment on this wire.