TCEHY - Emerging Markets Guru Says 'Time To Go Shopping For Hidden Gems At A Steal' As He Sees Opportunities In Bruised Chinese Hong Kong Stocks | Benzinga

Emerging markets fund manager Mark Mobius on Friday offered his take on the underperforming Chinese and Hong Kong markets and potential investment opportunities.

Turning The Corner? People have now begun comparing the Chinese and Hong Kong markets with India, which has seen a huge run-up, and see there is an opportunity for the former two to outperform, said Mobius, the founder of Mobius Capital Partners. The emerging-market investment guru shared his views in an interview with Bloomberg.

Source: Benzinga

“I am not predicting that but I think people are beginning to look at the valuations and beginning to think that perhaps it’s gonna be a good opportunity there,” the investment manager said.

Delving into the criteria for screening stocks, Mobius said his firm uses return on assets and return on capital, which he termed as very important. He also said he would look into earnings per share growth.

“We like companies with low debt,” Mobius said.

“Some of the stocks in China and Hong Kong are beginning to beat on some of those criteria.”

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Mobius also disagreed with the view that the weakness in Hong Kong and China is due to Chinese authorities’ problems with their messaging to the global markets. “Chinese officials are trying their best to regain ...