Guest Column

Bright prospects

  • Published 20 Aug 2009

Mark Mobius, executive chairman of Templeton Asset Management, on the long-term promise of China's economy.

The China market offers many interesting opportunities and will potentially continue to grow with the Chinese economy. The November 2008 stimulus package has proved to be timely and successful in ensuring that economic growth in China remains strong. Efforts to stimulate domestic demand, first of all, through increased infrastructure spending boosted sectors such as cement, steel, and construction. A return in consumer confidence also saw a recovery in domestic demand for apartments and cars, with sales and profits recovering from the trough. Moreover, private investments have now started to catch up (for example, property companies have started to buy more land to replenish their land banks and they have also accelerated their property developments). Factors such as these will ensure that China remains one of the fastest growing major economies in the world. This in turn will support the stock market as well.

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