Sat, Dec 20, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und