Fidelity's Anthony Bolton is expecting a slowdown in inflation to boost equity markets in China next year, following a sell-off which has hurt performance in 2011.
The latest figures from the Chinese authorities showed inflation had fallen to 4.2% in November compared with the same month last year. It was the lowest inflation reading since September 2010 and a sharp fall in October when inflation was at 5.5%, having hit a three-year high in July of 6.5%. The manager of Fidelity’s China Special Situations fund said falling inflation should allow the authorities to ease monetary policy. “Inflation has been a key issue in 2011 but it has already started to come down,” Bolton said. “A slowdown in inflation has allowed the Chinese authorities to stop...
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