Growing incomes boost the purchasing power of Chinese

Managers of China specific funds are finding opportunities among consumer stocks, which are benefiting from strong demand due to rising incomes. Charlie Awdry, manager of the Gartmore China Opportunities fund, says China is now well established as an exporting powerhouse, and as such its economy is exposed to global economic growth. However, the government is pursuing measures to mobilise domestic consumption, such as allowing the currency to appreciate. However, this has negative ramifications for China's exporters. "An appreciating yuan increases the purchasing power of consumers but ...