Mark Mobius, president of Templeton Emerging Markets commented the state of the chinese economy while speaking to the Reuters Mining and Steel Summit:
"High levels of growth in China are sustainable, but it will get harder and harder as the economy grows. You cannot expect double-digit growth rates over the longer term but you can achieve high single digit growth."
And Mobius highlighted the impact of the chinese growth on commodities:
"The implications for raw material are great. China has become quite active and aggressive in seeking out raw materials globally. Here in Africa they have a number of big projects. They are in Latin America as well. They are spreading out and seeking places where they can get raw materials to feed their economy."
Even though, Mobius sees premature actions from the central bank as a potential problem:
"A big spurt in inflation and central banks acting too quickly would mean you have a little problem"
His has also mentioned a few stock picks:
"That's why we have companies like PetroChina Company Limited (ADR) (Public, NYSE:PTR). The other way is to buy companies overseas like Vale (ADR) (Public, NYSE:VALE), which is a major exporter to China from Brazil and get exposure that way. Compania de Minas Buenaventura SA (ADR) (Public, NYSE:BVN) in Peru is one that exports gold and copper all over the place. Antofagasta plc (ADR) (Public, OTC:ANFGY), which is based in Chile but listed in London is another one and don't forget the Russians. They have the wherewithal and resources to supply China with a lot of raw materials."
Related ETF`s: iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM), Market Vector Russia ETF Trust (Public, NYSE:RSX), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), iShares MSCI Brazil Index (ETF) (Public, NYSE:EWZ)
No comments:
Post a Comment