Please note: this video was recorded approximately one week prior to the severe correction in the Chinese stock market.
– Andrew Foster admits that valuations on individual Chinese stocks are unsustainable and are likely to collapse. However, in his opinion, the overall growth of Chinese stock market capitalization does not constitute an ordinary bubble – the situation is far more complex. Andrew offers some data from history to place the evolution of China’s markets in context. He examines how the re-allocation of Chinese household wealth – away from property, and towards equities – might induce some of the Chinese market’s recent gyrations.
- Andrew Foster, Chief Investment Officer
- As of June 26, 2015, the Fund had no economic interest in Chinese A-Shares. If the Fund had been invested in Chinese A-Shares, please note the following: 1) any reduction or elimination of access to A-Shares could have a material adverse effect on the ability of the Fund to achieve its investment objective; and 2) uncertainties regarding China’s laws governing taxation of income and gains from investments in A-Shares could result in unexpected tax liabilities for the Fund, which could adversely impact Fund returns.
- The views and information discussed in this video are as of the date of publication, are subject to change, and may not reflect Seafarer’s current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Seafarer does not accept any liability for losses either direct or consequential caused by the use of this information.