Investing in China: not for the faint-hearted

China will turn into an economic powerhouse and provide returns for investors, similar to the scenario seen in the US where multinationals already own 5% of the country's economy. That is the verdict delivered by First State Investments and Baille Gifford which is now watching the Chinese market to see where future investment potential lies. Fund managers warn it will still take up to a decade before corporate governance rules match the rhetoric, following the country's historic acceptance into the WTO in November last year. Meanwhile, the country's chief advantage against othe...