Mark Mobius, executive chairman of Templeton Emerging Market Group, says there’s still time to buy into the recovery of Chinese stocks as the equity market could rise another 20%, Bloomberg reported. The investor’s prediction follows a 19% surge in the Hang Seng China Enterprises Index since March 20. Mobius, whose US$12 billion Templeton Asian Growth Fund outperformed 94% of peers this year, favors state-owned banks and energy companies because of their cheap valuations and plans to open up state-dominated industries. H-shares are valued at 7.3 times estimated earnings for the next 12 months, the lowest in emerging markets after Russia’s Micex index.
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