Hedge fund sees opportunities in South-east Asia

Hong Kong

AN Asian hedge fund that trounced peers by shorting China-related shares during a market rout last year is still bearish on Asia's biggest economy, even as it sees the region's best opportunities in Vietnam and the Philippines.

Deng Jiewen, who is part of a five-member team managing the US$80 million FengHe Asia Fund, said in an interview from Singapore that South-east Asian economies are doing a better job than China in boosting domestic consumption and attracting foreign investment. Chinese stocks face a difficult road ahead because of deteriorating earnings, Mr Deng said. The fund surged 20 per cent in the past year as Asian stocks tumbled.