Copying and distributing are prohibited without permission of the publisher
Feature: Crouching tiger, hidden value
12 March 2010
It is no surprise that the global investment community is keen to tap into the Chinese market, for not only are the prospects for growth looking good but the economy is transforming as it moves up the value chain.
Read more:
[China economy Jupiter]
As China enters the Year of the Tiger, the auspices look good. The economy may not have been wholly immune to the global recession but, unlike the developed world, it accelerated strongly in 2009 with GDP growing by 8.9% year-on-year in the third quarter. At this rate, and very soon, China is set to overtake Japan to become the second largest global economic power.
This growth is mainly the result of the quick action taken by the Chinese government and central bank relatively early on in the global financial crisis, says Philip Ehrmann, a fund manager at Jupiter Asset Management. Swift cuts in interest rates, a government induced surge in bank lending and fiscal measures worth $586 billion were all aimed at keeping the country on track for several more years of strong growth.
Ehrmann, manager of the Jupiter China Sustainable Growth fund, says: “The Chinese authorities not only...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
