PSigma scoffs at Chinese overheating fears

PSigma investment strategy director Thomas Becket says the impact of a global slowdown on emerging markets is the dominate investor issue at the beginning of 2008. Becket singled out China as the most important of the emerging economies and the key to ongoing returns. “The domestic consumer is by far the most potent driving force behind China’s progress, and we struggle to envisage any imminent threat to hinder this,” Becket says. “Fears about an overheating economy are overdone in our opinion, and we believe that the Chinese authorities will continue to manage the relationship between i...