Calling Tuesday’s 10% decline in China’s stock markets a long overdue correction, most fund managers maintained their faith that the market will rebound due to a number of positive factors, Reuters reports. China’s market continues to boom, regulators continue to impose reforms and investors have a great deal of cash on the sidelines that they are anxious to invest, fund managers said.
“It is more of a reality check. Things have run up far too quickly,” said Bratin Sanyal, head of Asian equity investments for ING Investment Management. “In the medium to long term, is the market going to do well? Yes. Is it going to remain an important market for investors? Yes. Will people remain interested in China? Yes.”