Chinese stock market still largely unexplored, forum told

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PETALING JAYA: China’s huge domestic stock market, which has grown to become the second largest in the world, presents an attractive opportunity for investors, said Value Partners Ltd.

The stock market, which is still largely unexplored by foreign investors, has become “far too big to ignore”, said Value Partners co-chairman and co-chief investment officer Datuk Seri Cheah Cheng Hye.

Cheah said the level of foreign ownership of these stocks is expected to rise rapidly to between 15% and 20% in the next 10 to 15 years. “This has resulted in fund managers all over the world putting Chinese stocks on their radar,” he said. This, he said, was as China’s old economy, which includes the heavy industries, steel and automotive sector, were already mature and not growing rapidly anymore.

 

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