An interesting interview with emerging markets veteran, Mark Mobius, of Templeton Emerging Markets.
The video is at http://www.bloomberg.com/video/mobius-on-emerging-markets-investment-strategy-Sh4TyGikRUe0ZR0EHQ7xHg.html
He believes the fundamentals of emerging markets are strong despite the falls in 2013. Growing three times developed markets, less debt, foreign currency reserves. Institutional investors have gone overweight U.S. and are potentially looking to diversify.
Very keen on Vietnam but foreign ownership rules restrict buying and for some larger companies this is changing.
More transparency and perhaps corruption of because of technology.
China’s aggregate finding and shadow banking, non performing loans 1%, doesn’t believe it, more like 3%. Banks have been raising a lot of capital $200 billion, half was china. Non performing loans growing. Opening to foreign lenders slowly, 2% of market but this has dangers. Could be a regulatory nightmare.
Mobius is not in Chinese banks because of non-performing loans but he is beginning to change his mind because their balance sheets are stronger. But more competition means that their spreads will get narrower. He is looking at consumer stocks e.g. department stores. International luxury retailers.
He likes China, West Africa, Vietnam, Ukraine, Peru.
by contrarianuk
Mark Mobius on Emerging Markets Strategy
Jan 8, 2014 at 6:33 am in Market Commentary by contrarianuk
An interesting interview with emerging markets veteran, Mark Mobius, of Templeton Emerging Markets.
The video is at http://www.bloomberg.com/video/mobius-on-emerging-markets-investment-strategy-Sh4TyGikRUe0ZR0EHQ7xHg.html
He believes the fundamentals of emerging markets are strong despite the falls in 2013. Growing three times developed markets, less debt, foreign currency reserves. Institutional investors have gone overweight U.S. and are potentially looking to diversify.
Very keen on Vietnam but foreign ownership rules restrict buying and for some larger companies this is changing.
More transparency and perhaps corruption of because of technology.
China’s aggregate finding and shadow banking, non performing loans 1%, doesn’t believe it, more like 3%. Banks have been raising a lot of capital $200 billion, half was china. Non performing loans growing. Opening to foreign lenders slowly, 2% of market but this has dangers. Could be a regulatory nightmare.
Mobius is not in Chinese banks because of non-performing loans but he is beginning to change his mind because their balance sheets are stronger. But more competition means that their spreads will get narrower. He is looking at consumer stocks e.g. department stores. International luxury retailers.
He likes China, West Africa, Vietnam, Ukraine, Peru.