Look Beyond Slowing China for Investment Growth in Asia

Updated : Nov 07, 2019 in Articles

Look Beyond Slowing China for Investment Growth in Asia


Hello and welcome to the Morningstar series,
“Why Should I Invest With You?” I’m Emma Wall and I’m joined today by Teera Chanpongsang,
Manager of the Fidelity South East Asia Fund. Hello, Teera. Hello. So, a lot of people when they are thinking
about investing in Asia, think just about Hang Seng and they see these news that China
is slowing down, they think, well, Asia is not for me. But that’s not true, is it? It’s not true. Actually, you look at Asia
as a whole, there are different geographic, you have different countries, like India,
Indonesia, Thailand, Malaysia, Philippines, Taiwan and Korea. Different countries have
different development in terms of the state of the development. You have young population,
very positive demographic in India, Indonesia and Philippines. So, this is rising working
population, growing GDP and you have many investment opportunities in this country.
You have cosmetic company in Korea that sell across Asia and China. You have a pharma company
in India that sell a lot of generics. You have airport in Thailand. You have department
store in Indonesia. A lot of investment opportunities in Asia that you can explore. And looking then at drilling down into that
part, the fund is called Fidelity South East Asia but actually you’re much broader than
that and that’s what won you a Bronze rating from our Morningstar fund analysts. One particular
region that has done very well for you is India, isn’t it? I mean, what is going so
well for India? I think India has what I call structural change
happen. You have the new government that has a strong mandate because they win majority
in the Parliament. And when they started to come on the power they started to do reform.
For example, in India you used to have a big subsidy on gasoline; today it’s zero subsidy.
They have opened up foreign direct investment in insurance, in different sectors to foreigners.
And then not only that. You have the new government that empower the state government to do a
lot of things. I work in Hong Kong. I get a lot of invitation from Indian consulate
for me to see Chief Minister of the state because they want to attract foreign investment
from Hong Kong, from China to invest in India and there is a program called Make in India.
India still has cheap labor costs and there are not much manufacturing in India. This
is the long-term, it may take at least five years to make it happen, but it’s a positive
step that Indian government – it’s a chain. Basically, the demographics are supportive
and the politics are supportive? Yes, that’s correct, because the young population,
very smart people in India and you have growing working population, growing middle class that
create a lot of opportunities for you to explore opportunities for the stocks in India. Teera, thank you very much. Thank you. This is Emma Wall for Morningstar. Thank you
for watching.

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