China slowdown has some US investors moving to consumer stocks

Boston

THE slowdown in the Chinese economy, which prompted the Chinese government to devalue the yuan currency on Tuesday, has already hammered the shares of US industrial companies.

Yet some contrarian US fund managers say there is still room to prosper by focusing on US companies that target Chinese consumers.

They say consumers who have benefited from the country's expansion over the last decade show few signs of curtailing spending on products such as high-end leather bags, cruise ship vacations and Starbucks coffee.

"Even with the slowing growth, there's still more money in people's pockets," said Dan Kern, president and chief investment officer at Advisor Partners in …