Sun, Aug 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Atlantis IM sees investment opportunities in China after positive developments

Tuesday, August 03, 2010

Opalesque Industry Update - Despite recent dips in its economic growth, China has seen a series of positive developments that will lead to increased returns for investors, according to Yang Liu, Chairman and Chief Investment Officer of Atlantis Investment Management (HK) and Fund Adviser to the Atlantis China Fund.

These developments include the decision by the Chinese Central Government to de-peg the renminbi from the US dollar, which has resulted in a re-rating of Chinese assets. Liu believes that the decision – something she had previously predicted – will also lead to multi-year positive returns for the market.

“In the coming months, we believe that investors will move to overweight China in their asset allocations and that the currency movement will provide a new investment horizon in the country,” says Liu.

“While some market participants have been concerned about recent economic data, the beauty is in the detail. Headline GDP growth in Q2 continued to be robust at 10.3% year-on-year and the data we have seen also indicates that the Government’s aggressive tightening policy – in place since March this year – has worked effectively to prevent the economy from overheating.”

Looking at recent economic data, Liu has noticed a disconnect between supply and demand with a marked decline in industrial value-added growth on one hand, and continued robustness in demand indicators such as fixed asset investment, retail sales and exports on the other.

Moving into the second half of 2010, Liu believes that monetary policy may take a more neutral stance and at the very least expects an easing of tightening policy to arrive in the fourth quarter as a catalyst to drive the market to recover from its lows of recent months.

“At that point, liquidity tightness and new loan growth control could also be relaxed,” says Liu. “This will potentially create significant alpha for investors willing to take a position against conventional wisdom.”

About the Atlantis China Fund
The Atlantis China Fund is a sub-fund of the Atlantis International Umbrella Fund, an open-ended umbrella unit trust established as a UCITS III and listed in Dublin.

The objective of the Fund is to achieve long-term capital appreciation through an actively managed portfolio of equity and equity related investments in The People’s Republic of China.

The Fund focuses on a portfolio of Chinese equities, investing predominantly in B-shares, H-shares, Redchips and P-Chips (listed privately-owned enterprises with a majority share owned by Chinese citizens). The Fund may also invest in A-shares through the use of structured products.

Performance (as at 30.06.2010):

Atlantis China Fund

June% YTD% 1Year% Since Inception%
0.9 -0.7 26.0 528.8

(Press release)

Corporate website: Source

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new