Legendary emerging markets investor, Mark Mobius, says he believes Chinese stocks have likely bottomed out, after an historic bloodbath stretching back to early in 2021.
Mobius, who is often referred to as the The Indiana Jones of Emerging Market Investing told the South China Morning Post the recovery from the current lows will be led by the Chinese Government’s desire to see a turnaround in the country’s stock markets and economy.
“Obviously, the Chinese Government wants the market to perform better. We are probably reaching the bottom or near the bottom and the market is probably going to recover,” he said.
He said while the Chinese Government’s regulatory crackdown on tech companies has impacted the the “big boys”, it has also created opportunity elsewhere across the Chinese market.
“These big boys were basically dominating so many fields. It’s a good idea to look at the medium and small companies, because they are going to be benefiting from government policies to create a more level playing field.”
Mobius also warned about the perils of passive investing in China and Emerging Markets.
“Do not buy the index, but buy individual stocks,” he added, concerned that many of the large companies that dominate indexes may continue to be impacted by regulation.
Related – Expert investor Q&A: Why it’s time to hold the line on Chinese stocks.