Can you profit from China’s growing middle-class?
While concerns over the real state of the Chinese economy dominate the western media’s coverage of the country, a quiet consumer revolution is also taking place, says Fidelity China Special Situations manager Dale Nicholls.
The Hong Kong based manager took over the high profile China investment trust from legendary fund manager Anthony Bolton – and has seen sparkling performance during his time at the helm – with a 96 per cent share price rise over three years.
As with most things China-related, those headline numbers cloak a rollercoaster ride. But for those willing to take on the volatility, is investing in the Chinese growth story a wise move for the next five years?
Dale joined us on the Investing Show to discuss what’s going on. He says: The interesting thing I find about China is there’s huge variance in growth levels between different parts of the economy.
‘You’ve seen companies that are really benefitting from that shift seeing significant growth rates, but then the losers – the companies that are on the negative side of that shift you can see their businesses actually slowing significantly as well.
‘As a stock picker that’s actually something that’s good, you can be selective and focussed on the areas that are really benefitting from the shifts that are happening on the ground.’
Watch the video interview above.