Investors would be forgiven for viewing Chinese equities with caution but, as Artemis Global Select fund co-manager Simon Edelsten writes, excellent value can be found.
Managing a global equity fund means comparing similar companies in different markets around the world. Today, when I compare the valuations of companies in the UK with those of their Chinese peers, the results are striking. Industrial and Commercial Bank of China, the country's largest lender, trades below book value, despite a historic yield of over 7%. In the UK, meanwhile, Lloyds Bank trades on over 1.3x book value. It hopes it can return to paying a dividend one day soon. In telecoms, China Mobile trades on 1.3x revenues, while Vodafone trades on 1.8x revenues. That implies Vodafo...
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