This is an excerpt from an interview with Wing Chan lived on 20 February, 2017.
Wing Chan, Morningstar’s director of manager research, Asia shares what we like about India, Taiwan and China’s stock markets in a recent interview at TVB.
India
Wing started by pointing out that the valuation of emerging markets is more attractive than developed markets. Quite a number of regional fund managers see India’s prospect as its economy is going through a structural reform, and the India companies have a reasonably well quality on average. Although India equities are currently traded at 16 – 17 times -- not particularly cheap, Wing suggested that they are still worthy of attention, especially if you are a long-term investor. He reminded investors that equity funds investing in a single market tend to be more volatile. Investors with lower risk appetite may want to consider regional funds instead.
Taiwan
The global economy is stabilizing, which benefits Taiwan’s trade-oriented economy. While the Taiwan stock market had performed well last year, its equities are traded at only 13 times right now. Wing pointed out that nearly half of the stocks listing in Taiwan are technology related, and can likely benefit from new mobile phones release.
Shanghai and Shenzhen
Last but not least, Wing suggests that the Shanghai and Shenzhen stock markets are worth paying attention to, given their fairly attractive valuation. While most investors used to look at the Hong Kong listed Chinese companies, he reminded investors not to overlook the Shanghai or Shenzhen listed companies, or the ADRs trading on US Exchanges, of which many are consumer or technology companies that are not available in the Hong Kong Exchange.
