Attractive starting valuations abound for Chinese stocks

China/Platinum/Asia/

11 April 2022
| By Laura Dew |
image
image
expand image

Investor sentiment of China is at absolute low, according to Platinum, leaving opportunities to pick up cheap stocks.

In the monthly Platinum Asia fund update, managers Andrew Clifford and Cameron Robertson said Chinese equities remained very cheap.

The fund had 44.1% allocated to China, more than four times the volume allocated to its second-largest geographic weighting which was South Korea at 8.4%.

Chinese holdings within the fund included Tencent, Ping An Insurance, Alibaba Group, industrial ZTO Express and real estate firm China Resources Land.

The pair said: “Sentiment towards China among global investors is at an absolute low point, in our view. The reality is that the Chinese economy continues to lumber along with strong earnings growth expected for its corporates, rumours of a property crisis receding (these were always vastly overblown) and officials in a position to offer moderate support in the form of interest rate and tax cuts.

“Most importantly, Chinese equities remain cheap and very under-owned by global investors. As such, we see China and the region as a whole as an important diversifier for investors and believe we are more than adequately compensated for political and sentiment risk by attractive starting valuations for very fine businesses.”

They added China lacked an inflation problem unlike other major developed economies, its consumer prices index rose by 0.9% over the 12 months to February 2022.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS