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Alternative Market Briefing

Some China funds are doing well as A-share market is recovering

Wednesday, March 18, 2009

By Benedicte Gravrand, Opalesque London:

Even as most emerging markets are expected to go through much slower growth this year, some analysts believe China might keep up at good pace at a - slower but still high - growth rate of 6.5% this year, partly due to its huge reserves and its fiscal stimulus plans. Premier Wen Jiabao confirmed this month that he would broaden efforts to keep the economic growth rate at 8%. If the rate falls below 6.5%, that may signal a recession in Chinese terms, according to State Street.

However China exports plunged 25.7% from a year earlier in February according to the Chinese customs agency. And foreign investment in China - which rose by 23.6% in 2008 to $92.4bn - fell in January and February to $13.3bn (GBP9.5bn), a drop of 26.2% from the same period a year ago, reported the BBC on Monday.

Still, there are some strong believers in China's strength. Chinese stocks are likely to emerge as strong performers in 2009 said Mohamed El-Erian, CEO of the largest bond fund house PIMCO, to Reuters recently.

UBS recently claimed that Chinese mainland stocks offered one of the most attractive opportunities for investors in Asia.

Further, San Francisco-based law firm Pillsbury Winthrop Shaw Pittman argued in a recent report that although the financial crisis h......................

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