153. When is the best time to invest in China?

Having invested in China for more than two decades, Martin Lau, manager of FSSA Greater China Growth fund, is ideally placed to explain what is happening with real estate giant Evergrande. He explains the issues in the Chinese property market and why the government is keen to tackle high prices, puts the regulatory interventions of the past few months into perspective, and reassures investors that China still represents a good long-term investment.
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FSSA Greater China Growth is run by Martin Lau and co-manager Helen Chen. Based in Hong Kong, the managers look for well-managed businesses with good corporate governance across Hong Kong, China and Taiwan. The fund has been a firm favourite of ours for a number of years because Martin and the team have shown that they can consistently produce the goods in any type of market environment.

Read more about FSSA Greater China Growth

What’s covered in this podcast:

  • What has happened to Chinese real estate developer Evergrande [0:15]
  • How the Chinese government is determined to take high property prices in the country [1:36]
  • The manager’s thoughts on increasing regulation and why the government is intervening so much lately [3:03]
  • The manager’s thoughts on Tencent dropping out of the world’s 10 largest companies and how Chinese companies become so successful in the first place [6:38]
  • What are Chinese A Shares and why they represent such an exciting investment opportunity [8:52]
  • Why the manager also invests in Taiwanese and Hong Kong companies [11:39]
  • The manager’s thoughts on valuations in the Chinese stock market today [14:44]
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