Quality China stocks can still be found: UBS AM

Singapore

DESPITE the lofty prices Chinese stocks trade at relative to their earnings, quality stocks can still be found, a portfolio manager at UBS Asset Management said on Wednesday.

As companies seek to take advan-tage of China's economic transformation (albeit a slowing transformation), it is the Chinese healthcare sector that is shaping up to be "very promising" in the long run.

"Our investment approach in one sentence is very simple: We want to identify the next TSMC, the next Samsung Electronics, the next Tencent," said Bin Shi, lead portfolio manager of China equities at UBS. "If you look at the hea…