The exceptional growth seen in "Chindia" has only strengthened the case for investing in emerging ma...
The exceptional growth seen in "Chindia" has only strengthened the case for investing in emerging markets, a European fund manager has claimed.
Speaking at the Spanish Forum, Wim-Hein Pals, senior vice-president for emerging markets at Spanish-based Robeco Asset Management, said emerging markets were playing catch up to the US and Europe and believed it was only a matter of time before they overtook the "traditional powerhouses".
He explained: "The fundamentals for the US are not particularly strong, while Europe has only seen mediocre economic and earnings growth. Japan is improving, however, when this is compared to South Korea, China and India, it is clearly evident the growth these counties are experiencing. The Chinese economy will surpass the US economy by 2050 and India will surpass Japan by 2030."
Pals said there were new trends emerging in Asia including a growing middle class with strong purchasing power, improved financials, which translated to less debt, rational capex investing, a better environment for investors and technology developments where emerging countries have changed from followers to leaders.
"It is all about sustainable growth for countries - economic growth can be translated into earnings growth," he said.
Companies that offer excellent growth potential, according to Pals, include Korean-based Samsung Electronics, Chinese-based Chaoda Modern Agriculture, Brazilian iron ore producer Companhia Vale do Rio Doce and Indian-based technology firm Infosys.
Exceptional growth in China and India strengthens case for investing in emerging markets
Chinese economy predicted to overtake US by 2050
Indian economy set to beat Japan by 2030
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation