Mumbai: India, the United States and parts of other developing country markets have seen the flow of funds directed from China because the crackdown of the latest regulations in the second largest economy in the world has scare the market, according to investor veteran Mark Mobius.
“I would say half the money just left …
but I thought it was temporary, it would not last a long time,” Mobius, Developing Market Market Manager and founder of Mobius Capital Partners, told Reuters Global Markets Forum (GMF) on Tuesday .
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Mobius said his company was “very concentrated in India”, with around 20% allocation, adding that he bullish in the sector ranging from medical testing to industrial equipment.
“This is a broad enough scope that we have in India.
Many opportunities.” Mobius previously made his name as a developing market of teachers with the US Money Manager of Franklin Templeton, where he managed more than $ 50 billion in the EM portfolio.
The effects of Chinese hard action will be temporary, and for long-term curb monopolistic trends that enable small and medium enterprises (SMEs) to develop, said Mobius, whose companies manage more than $ 414 million assets.
Uncommon of the steps of Chinese regulations make the country not attractive to foreign investors in the short term but can make it interesting in the long run, the global fund manager told GMF last week.
In China, Mobius is optimistic on medical equipment makers, health services, high-level education companies that have not been affected by hard action, consumer products and fast food recently.
“We feel that it is good where we are,” he said, added that he would consider buying several shares, especially in the SME segment, given the recent price correction.
“There are opportunities now in China as a result of this panic after government intervention,” said Mobius.
Along with India, Mobius said the funds were bullish in Taiwan and Brazil.
‘India, we see the flow of funds after Chinese crackdown’
