Source: Finance Association

Recently, Mark Mobius (Mark Mobius), the 87-year-old “Godfather of Emerging Markets”, changed his view on the Chinese stock market, believing that the Chinese stock market has now bottomed out.

He believes that China's recently introduced measures to optimize the real estate market will restore investors' confidence. Furthermore, his recent trip to southern China made him feel the outstanding results of China's infrastructure construction and helped him change his mind.

The “Godfather of Emerging Markets” shifts its view

Just in April of this year, Max said in an interview that he thought the Chinese stock market was “unattractive.” Recently, however, he said that he had changed his views on the Chinese stock market.

Maipus said that he is not “super bullish” on China yet, but he does think that the Chinese stock market “is starting to look good now.”

“The trend of the Chinese stock market was too low before, and people were too pessimistic. When you invest, you don't want to stand in front of a line of high-speed rail coming at you, so you have to stand by and let the high-speed rail pass through.”

“When the market bottoms out, you can start investing. Now, China's real estate market has bottomed out. After the government adopted a series of measures to support the real estate market, the Chinese real estate market has begun to recover. We have seen the light at the end of the tunnel.”

Maipus also announced that it plans to launch a new fund worth 1 billion US dollars in September this year. The fund may invest in mainland China and Hong Kong stock markets, as well as the stock markets of India, Turkey, South Korea, and Taiwan.

China's New Real Estate Deal Will Improve Confidence

Recently, all parts of the country have successively optimized and adjusted their real estate policies, and measures such as reducing down payment ratios, lowering loan interest rates, and abolishing purchase restrictions have been adopted. Macpex believes these measures will restore market confidence.

Moreover, he believes that mainland investors will be more inclined to invest part of their capital in the stock market than in real estate.

“The Chinese used to tend to invest too much of their wealth in real estate. They will now learn the lesson of 'don't put all your eggs in one basket'; they'd better diversify their investments and invest their money in some good stocks.”

Furthermore, his recent trip to southern China had an impact on his thoughts.

“We drove around and started to see signs of recovery. What's most impressive about China today is its incredible infrastructure, high-speed railways, roads, and bridges. It's amazing (an achievement) and a good foundation for future growth.”

A new fund will be established in September this year

Maipus began investing in developing economies in the 80s of the last century. He revealed that his new hedge fund, Mobius Emerging Opportunities Fund (Mobius Emerging Opportunities Fund), will open to global investors in September. It aims to raise up to $1 billion from established investors, with a minimum investment of $500,000.

Using artificial intelligence tools, Maxus and his team will select 30 stocks from listed companies in mainland China, Hong Kong, Taiwan, and Turkey, India, and South Korea that are good at using technology to achieve growth.

He will be looking for companies with a high return on capital, low debt, and good management. Maipus said that he favors mainland Chinese companies with good international brands and a good image, such as some electric vehicle manufacturers or well-known technology companies.

Maipus said that companies listed in Hong Kong and Shanghai may be considered.

“Hong Kong is an important gateway to China and an international market. We found many excellent Hong Kong listed companies worth investing in.”

editor/tolk