Jupiter to launch new Chinese investment fund

12 October 2006
A new fund specialising in investments in China will be launched by Jupiter on October 20.

Opportunities within the country are notable, particularly given its vigorous GDP growth, though analysts are increasingly focussing on the changes in China's economy as it continues to develop.

The new Jupiter fund will be run by Philip Ehrmann, formerly of Gartmore; with his previous employer he was a specialist fund manager for China and Asia Pacific.

"The initial stages of China's economic development have been based on exports. But we are now entering the second stage, where tremendous growth in the number of middle income families is resulting in the emergence of domestic demand," notes Mr Ehrmann.

He further argues that a limited program of liberalisation from the Chinese government has "enabled greater access to capital and financial services by China's growing private sector".

However, the fund will focus on Chinese firms listed on the Hong Kong, Singapore and Nasdaq markets, where trading and "corporate governance" is widely seen as better established.

Annual GDP growth in China to the second quarter of this year was 11.3 per cent, reports the Economist, with consumer price inflation remaining low at 1.3 per cent.

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