Chinese New Year sets stage for strong 2007

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Equity investments in China are set to deliver solid returns in the next 12 months despite a strong 2006, suggests several investment houses.

New Star Investment Funds, HSBC Investments, and Atlantis Investment Management all disagree with analysts who argue the investment potential of the nation may have already peaked. New Star sayseconomic growth in China has attracted foreign investors and fuelled strong gains in the stock markets of China and Hong Kong. Ian Beattie, manager of the New Star Pacific Growth Unit Trust, says: “Heavy investment has been made in fixed assets and infrastructure, with the urban residential property market also expanding quickly. “The crucial dynamic is urbanization. Globalisation and outsourci...

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