Pullback in Asian stock markets 'may present buying opportunity'
PROTESTS in China have caused a pullback in some Asian stock markets, but the executive chairman of Templeton Emerging Markets Group has identified the decline as a buying opportunity.
Mark Mobius said: "We look on it as a buying opportunity rather than a sell opportunity. If prices go down low enough, they will probably hit our buy limits,'' he said. Templeton has no plans to scale back its operations in Hong Kong, and is more likely to expand them instead.
It is watching closely how the protests may affect China's leadership.
"If the government can be seen to be fair and clean, if it moves the party towards a faster implementation of (reforms), there may be a big impact on the stock market," he said.
The firm manages about US$40 billion in emerging assets, and is exposed to state-owned companies such as PetroChina.
"What happens in Hong Kong will have a big implication on the rest of China and on Asia,'' he said.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover