Yahoo Finance “China should be a part of everyone’s portfolio”
Chinese stocks are off to a strong start for the new month after a disastrous finish in May. The Shanghai Composite posted its biggest one day gain since January, up nearly 5% on its manufacturing PMI rising from the previous month and in-line with estimates at 50.2.
The aftermath from China’s stock market’s sudden sell-off last week had analysts' warning that the market is in a bubble growing louder. But that doesn’t shake Kevin Carter’s confidence in a recovery, and he expects the boom in Chinese equities to continue.
Carter is the founder of Big Tree Capital and The Emerging Markets Internet & Ecommerce ETF (EMQQ) and said “China should be a part of everyone’s portfolio… because that’s where most of the world’s population is and that’s where most of the growth is.”
Economic data after data on China seems to point to a trend – its economy is slowing quickly. But Carter disagrees and said after a recent trip to China, he saw “no signs of China slowing down.“ The investment manager believes American investors should get exposure “on the growth of China, the growth of the Chinese consumer.”
Get the Latest Market Data and News with the Yahoo Finance App
Alibaba, Baidu, 58.com
Aside from Alibaba (BABA), the biggest IPO in history, Carter noted “there’s also Baidu (BIDU), the Google (GOOG) search engine of China.” There are also smaller Chinese companies that trade on the New York Stock Exchange including 58.com (WUBA) which is “basically the Craigslist of China.”
Apple
Carter thinks China and Apple's love affair is only going to get hotter. “Apple (AAPL) is benefiting in a major way, and they will continue. They were a little late getting signed up with China mobile, they were a little late getting the large screen phone, but they corrected those things.”
YUM! Brands
Fast food is an area Carter says won't slowdown in China. “Yum brands (YUM), gets most of its profit from China now than from the U.S. operations and they’re actually seeing some activist investors that’s now calling for Yum brands to spin off their China business group.”
More from Yahoo Finance:
Investors eye China/jobs ; Semiconductor mega merger; Visa's FIFA threat
Google's Sundar Pichai gives Yahoo Finance a sneak peek at new products
