The growing dominance of China

Mark Tinker

AXA Investment Managers

A survey by Asian Investor gives some insight into how global investors are looking at Asia over the next 12 months. An overwhelming 41% of respondents listed China (including Hong Kong) as their first choice based on location, with first, second and third choice votes for China adding up to 65% as opposed to 50% in the same survey last year. I continue to see China as an opportunity set, providing the spectrum of potential return vehicles for long term investors searching for yield. In this sense, China can provide a disinflationary pulse for asset prices in the same way as it did for goods prices. To elaborate on this a little; if we track the baby boomers over time, wherever they go, they take an inflationary pulse with them. In many ways this should not be surprising since they tend to produce a demand shock relative to supply, which then tends to produce a supply response, but with a lag. Once they move on then we have the opposite, disinflation as the new supply exceeds demand. Read more: (VIEW LINK)

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Mark Tinker
Mark Tinker
Fund Manager
AXA Investment Managers

AXA Framlington takes an active, fundamental approach to investing. We are high conviction investors with an entrepreneurial mindset that is grounded in intensive company research and bottom-up stock selection as a primary source of added value. ...


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