Haig Bathgate, Chief Investment Officer, discusses Chinese equities with Citywire's James Phillipps.
'We're continuing to avoid playing the contrarian view on China for the time being,' said Haig Bathgate, chief investment officer at Turcan Connell. 'In our view, Chinese stocks were in a bubble and despite the recent sell-off this has the potential to go a lot further as the outflow from Chinese mutual funds becomes self-propagating.'
He adds that at the market's peak there was a significant amount of share issuance, which had the effect of being dilutive.
'We're not advocates of the hard landing scenario but think that investing in the Chinese domestic economy is unlikely to be rewarding any time soon – for the same reason we're negative on most industrial commodities.'
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This content was generated prior to Turcan Connell Asset Management Limited operating as Tcam.