Trillion Dollar Fund Manager Says Buy China Stocks
- T. Rowe Price multi-asset team favors Chinese equities
- Says American stocks highly priced with profit growth waning
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Investors should ignore pricey U.S. stocks and turn to their cheaper Chinese peers instead, where further stimulus will help propel earnings growth, according to T. Rowe Price.
Chinese shares trade at a discount and will benefit as authorities crank up efforts to promote the flow of credit in the world’s second-largest economy, said Thomas Poullaouec, head of Asia Pacific multi-asset solutions for the $1.1 trillion asset manager in Hong Kong. By contrast, U.S. shares are pricey and Federal Reserve stimulus is already well priced in by investors, he added.