Fund managers have dismissed concerns next month's Beijing Olympic Games could mark the beginning of the end for rapid Chinese economic expansion.
With just 16 days before the Games of the XXIX Olympiad, fears have mounted the event’s closing ceremony could trigger a Government-led slowdown for the Chinese economy.
However, Allianz’s Michael Konstantinov and JPMorgan’s Pinakin Patel feel the Chinese race will continue to be run long after the athletes leave the communist state.
Konstantinov, the Allianz RCM BRIC Stars fund manager, says China’s drive to become the world’s largest economy in the next 10 years will ensure its growth story continues.
“The Olympic Games should be seen as politically and economically very important for China. Chinese growth will not end with the Olympic Games,” he says.
“Any slow down in China’s economy would not necessarily be the result of the Olympic Games ending, but rather the whole world slowing down within the current global climate.
“The biggest story over the next year or so will be the transformation of China from an export driven economy towards a consumer driven economy.”
JPMorgan Asset Management Far East client portfolio manager Pinakin Patel says the Olympics are just a “small step” in China’s economic transition.
He says of the Chinese Government’s $34bn Olympics spending, just $8bn is directly related to the Games, with the rest used to upgrade infrastructure in and around Beijing.
“As China becomes a focal point for the Olympics, we continue to believe that China offers good long term investment opportunities and by focussing on its new export market will provide some shelter from the world’s wider economic uncertainties,” he says.IFAonline
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