India, US seeing fund inflows after China crackdown: Mark Mobius
The veteran investor said he was bullish on sectors ranging from medical testing to industrial equipment
India, the United States and parts of other emerging markets have seen fund inflows redirected from China as recent regulatory crackdowns in the world's second-biggest economy have spooked markets, veteran investor Mark Mobius has said.
"I would say half the money has just left … But I think that is temporary, it will not last," Mobius, emerging markets fund manager and founder of Mobius Capital Partners, was quoted as saying at the Reuters Global Markets Forum (GMF) in a recent report.
Mobius said his firm was "heavily concentrated in India", with about a 20% allocation, adding that he was bullish on sectors ranging from medical testing to industrial equipment.
”It’s a pretty wide scope that we have in India. Lots of opportunities,” he said.
Mobius believed that the effects of China’s crackdown will be temporary, and over the long-term, curb monopolistic trends enabling small- and medium-sized enterprises (SME) to thrive.
The unpredictability of China’s regulatory measures make the country unappealing to foreign investors in the short term but could make it attractive in the long run, he told GMF last week.
In China, Mobius was upbeat on medical equipment makers, healthcare, higher-level education companies that haven’t been impacted by the recent crackdowns, consumer products and fast food.
”We feel that it’s good where we are,” he said, adding that he would consider buying some stocks, especially in the SME segment, given the recent price corrections.
”There are opportunities now in China as a result of this panic following the government intervention,” Mobius said.