Prices, liquidity, rule of law issues in China investments

Paul Niven, director head of investment strategy ISIS Asset Management points out the problems China’s leadership will have in maintaining the existing model of boosting output based on cheap labour, even as outside investors buy into initial public offerings and Chinese stocks at prices that he considers too expensive. Interestingly, this message is somewhat supported by Mark Mobius, managing director Templeton Asset Management, and manager of the Templeton Emerging Markets Investment Trust, who also points to risks, despite both his performance and faith in the region's ability to prod...