Baring Asset Management has moved to an aggressively overweight position in Hong Kong and Singapore while maintaining its stance on Japan and emerging markets.
BAM says it remains confident that growth in China will, despite predictions to the contrary, continue to grow rapidly, prompting it to maintain its overweight position there. It also believes the rest of the region is in the very early stages of a recovery, aided by the decline of the US dollar which, with each devaluation, improves the East's
competitive position against the Europe for traded goods and services.
Chairman of Baring's strategic policy group Percival Stanion says: “Many commentators have become convinced that the Chinese economy is poised for a sudden downturn. There are signs of excess, but when we look at the contrast between the rhetoric of the authorities, which points to a desire to trim back growth in overheated sectors like property, and their actions, which are still expansionary, we conclude that growth will continue at a very rapid pace.”