Fidelity International portfolio manager Anthony Bolton continues to believe in China - in both good times and bad. The manager of the closed-end Fidelity China Special Situations Fund, who came out of less than two years in retirement at the end of 2009 to pick up the China baton once again, addresses the world economy and China's role in that in today's Wall Street Journal.
Bolton believes that the Chinese people, while their spending has declined somewhat, will continue to spend large amounts of their money on cars, clothes, food, cellphones, iPads and other types of electronics, as well as the gas to fuel their new cars and the investment products to boost their checkbooks.
"The center of gravity of gravity of the world is shifting East. China has the most impact on the world," Bolton says. "Balance sheets are much stronger than I expected, with many companies having net cash positions.
"Recent macro indicators point toward slowing growth globally as the sharp economic recovery seen after the recession is losing momentum" Bolton continued. "In China, the tightening process that started late last year is also slowing the economy - although growth is still well above that seen in developed markets. In a low-growth environment, the high relative growth being experienced is China is increasingly attractive to global investors."
Earlier, Bolton said of China, which he only first visited in 2004 and where he moved to Hong Kong this past April: "The center of gravity of the world is shifting East. China has the most impact on the world. China is the opportunity of a lifetime, and I want to play a part in it while I can.
"I believe in my lifetime, China will become the second-largest stock market in the world," Bolton said.