Buying the Asian perspective – MPEL and Crown

Chief Investment Officer and founder of Aitken Investment Management
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Key points

  • Playing “China” through Australian resource stocks is not truly playing China: it is playing “iron ore”, “oil” or “coal”.
  • Since May 14, the Shanghai Composite Index is up 12.5% and the AMP Capital China Growth Fund (AGF) up 21%.
  • Macau casinos could be cheap if consensus negative earnings revisions are ending. Consider Melco Crown Entertainment (MPEL) or Crown itself (CWN).
  • Invest in Australia for income – the rest of the world for growth.

 

I spent the end of last week and the weekend in Hong Kong and Macau, meeting with a wide variety of institutional investors, hedge fund investors, family offices and investment bank/brokers. The timing of the trip was very good as it coincided with further massive upward price action in Chinese equities, which has relative and absolute ramifications for the region.

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