Searching for conviction: Premium China study tour

2012-10-22 14:17:00 From: financialstandard.com.au

Premium China Funds Management (PCFM) has just wrapped up a study tour of China, which saw more than 50 Australian financial advisers get a first-hand feel of two cities in a country that's never far from the headlines.

While its economic strength is beyond question, it is also a country in the middle of drastic change that provides more than a few areas of concerns when it comes to investments.

Nearly every adviser on PCFM's recent study tour said that while they could access all the research and information on China's economy and the investment options they want, often there is no substitute for sampling the intangibles that can only be found on the ground.

In a line of work that's never far from statistics and facts, it's essential to also to get a feel for what can't be objectively measured, said Ron Griffiths, from Griffiths and Co., a Count-aligned practice.

This is even more important, he said, as while a lot of the commentary on China's economy is based on research, there's often still an element of opinion involved, with numbers "that can be spun both ways."

This was a sentiment echoed by most present, with many saying they were looking for something that they could only 'feel' before making a decision on investments in China.

"When people come here, they leave with a lot of conviction. Obviously there are some problems [with China's economic outlook] but when people have gone home on previous trips they have left with a lot of confidence," said Jonathan Wu, associate director and head of distributions and operations, PCFM.

China is experiencing is a rise in internal consumption levels that are contributing to its economy, in part fueled by the growth of the country's middle class.

Thousands of Chinese tourists, also present at Beijing and Shanghai attractions, and the number of luxury-brand stores along streets in both cities.

Despite the fact that it was merely a snap shot of one part of a vast country, it did not go unnoticed by those present.

   

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