Why China's stock market is misunderstood

THE further opening up of China's equity market, coupled with new and fast-growing industries, leads us to believe that the market is ripe with opportunities for bottom-up stock selection.

Charlie Munger, Warren Buffett's long-time partner, recently said that China was a "happier hunting ground" for stocks than the US. "A shrewd person can find more bargain stocks in China than he can find in the United States," he said.

In recent years, China's economic transition, rising debt and political risk have raised concerns. Indeed, it's hard to go a single week without a negative feature broadcast in the mainstream and financial media.