Survey: China to be world's top investment market in 2011

November 16, 2010 - 0:0

A Bloomberg survey result released on Friday shows that China is regarded by investors as the top investment market in 2011 with more opportunities than any other economy in the world.

Roughly 33 percent of the 1,030 Bloomberg Global Poll respondents, who are investors, traders and analysts, have given their approval to China as the best place for investment, while 31 percent prefer Brazil and 29 percent go for India.
The United States lags behind all of the three emerging economies and ranks the fourth with only 23 percent support.
However, the enthusiasm toward the emerging markets, including China, is at least partly driven by the concern for the risk expected to be triggered by the United States' recent move to print 600 billion U.S. dollars, known as quantitative easing II.
""While professional investors can make money in these markets and protect themselves from the inevitable downturn, the market appreciation is driven by the Federal Reserve, not underlying economic fundamentals,"" Todd Lechtenberger, chief investment officer at the Board Trust in Oklahoma City, told Bloomberg.
And investors, though optimistic about the Chinese market, also are concerned about China's inflation and property market. A staggering 74 percent of respondents think there are property bubbles in China, while 63 percent said there are property bubbles in the United States and Europe.
According to China's National Bureau of Statistics, China's economy grew by 10.6 percent over the first three quarters of the year, with the consumer price index up by 2.9 percent. But the CPI in September soared to 3.6 percent, the record high for 23 months.
But 59 percent of the respondents are still confident about the China's economic policy, while 53 percent are confident about the U.S. policy.
The latest figure shows that China's CPI has risen further to 4.4 percent driven by food prices. That, combined with the concern over the possible massive capital inflow into China driven by cheap U.S. money, is stoking the expectation of interest rate hikes by China's central bank.
Recent remarks by senior central bank officials have indicated that China is tightening its monetary policy and keeps highly vigilant about hot money influx. (Sourc e: english.peopledaily.com.cn)