Wingate questions China's growth story
Wingate Asset Management has reiterated warnings that investors cannot trust China's official growth numbers when investing in the country.
An 8 or 9 per cent growth rate per year with government interference wasn't possible when coupled with such a low rate of volatility, Wingate chief investment officer Chad Padowitz warned.
"It's just too fast, with too many moving parts to make it realistic that you can believe those numbers," he said.
"The Government tells you one day before the end of the month what they grew at: no-one has that good a system," he added.
Investors should look at underlying data of electricity generation, cement demand, and oil demand and consumption, which indicated a far slower economy, Padowitz said.
He also questioned why the Government would be talking about providing a stimulus when its supposed growth was so high.
China has to rebalance their economy because fixed asset investment was outstripping consumption. Fixed asset investment comprises 60 per cent of the economy compared to 30 per cent in consumption, Padowitz said.
There has to be very low fixed asset investment in the future, which would have significant ramifications for commodity growth in Australia, irrespective of how fast the Government says the economy grows, he said.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
