Rise of middle income family boosts China domestic stocks

Managers have been focusing their Chinese portfolios towards domestic stocks, which are benefiting from the rise in consumer wealth. Jupiter, F&C and Aberdeen have all positioned their portfolios to be overweight stocks that will benefit from an increase in consumer spending. Philip Ehrmann, manager of the Jupiter China fund, says: "We are now entering the second stage of growth as China shifts from being export focused toward the domestic market. The government is increasing investment in infrastructure projects, driving forward agricultural reforms, increasing healthcare and education...