- 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.