China's 'new economy' stock gains an echo of dotcom boom: Mobius
While bulls say valuations still have room to rise, others believe investors are already overweight
Shanghai
MARK Mobius is convinced that China's push into technology, consumer and service industries will produce a more sustainable expansion in the world's second-largest economy. He's just not so sure it's going to work out for equity investors.
The chairman of Franklin Templeton's emerging-markets group predicts China's "new economy" sectors will drive growth as the nation weans itself from a reliance on credit-fuelled investment. The problem, Mr Mobius says, is that many stock valuations already reflect a successful transition. The ChiNext index - used by local traders as a proxy for new economy companies - is three times more expensive than the benchmark Shanghai Composite Index after surging 25 per cent in the past month.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China’s factory activity growth hits two-year high, Caixin PMI shows
Japan’s firms trim spending, reflecting headwinds to growth
South Korea factory activity expands at fastest pace in two years
Japan’s May factory activity expands for first time in a year, PMI shows
Donald Trump joins TikTok and rapidly wins two million followers
China’s tourists to spend nearly 6.8 trillion yuan on holidays at home