Investing In China: Pros and Cons

It is a mixed outlook for investing in China: while dividend yields look attractive, some fund managers question the level of government intervention

Karen Kwok 9 December, 2016 | 4:54PM
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The beginning of 2016 was marred by the Chinese stock market crashing following the Federal Reserve raising interest rates in the US. Fast forward to December and China seems to no longer be the centre of investor concerns – being more distracted by political uncertainties in the western world.

In fact, China has led the emerging market rally since February, going from unloved market to success story. So which version should investors expect in 2017? The problem child of the January or the profits of the subsequent 11 months? We look at two sides of the argument for the second largest economy in the world. 

Pros: Chinese Dividends Set to Rise

China will be an attractive income investing destination going forward, driven by increasing demand for yield within the region and a more stabilised economy, according to Mike Kerley, fund manager of the Henderson Far East Income trust (HFEL).

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Henderson Far East Income Ord313.50 GBX-1.57Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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