India, US see cash inflows after China crackdown

By Divya Chowdhury

MUMBAI, Aug.11 (Reuters) – India, the United States and parts of other emerging markets have seen inflows of funds redirected from China as recent regulatory crackdowns in the world’s second-largest economy have spooked investors. markets, according to seasoned investor Mark Mobius.

“I would say half the money is just gone… But I think it’s temporary, it won’t last,” Mobius, emerging markets fund manager and founder of Mobius Capital Partners, told Reuters Global on Tuesday. Markets Forum (GMF). .

Mobius said his business was “heavily concentrated in India,” with an allocation of around 20%, adding that he was bullish on sectors ranging from medical testing to industrial equipment.

“It’s a pretty wide field of action that we have in India. Lots of opportunities.”

Mobius had already made a name for himself as an emerging markets guru with US fund manager Franklin Templeton, where he managed more than $ 50 billion in emerging portfolios.

The effects of the Chinese crackdown will be temporary and, in the long run, curb monopoly trends that allow small and medium-sized enterprises (SMEs) to thrive, said Mobius, whose company manages more than $ 414 million in assets.

The unpredictability of China’s regulatory measures makes the country unattractive to foreign investors in the short term, but could make it attractive in the long term, global fund managers told GMF on last week.

In China, Mobius was bullish on manufacturers of medical equipment, healthcare, higher education companies that have not been affected by the recent crackdowns, consumer products and fast food restaurants.

“We think this is good where we are,” he said, adding that he would consider buying stocks, especially in the SME segment, given the recent price corrections.

“There are now opportunities in China due to this panic following government intervention,” Mobius said.

With India, Mobius said his fund was bullish on Taiwan and Brazil. (This interview was conducted in the Reuters Global Markets Forum chat room on Refinitiv Messenger. Join GMF:

(Reporting by Divya Chowdhury in Mumbai and Aaron Saldanha in Bengaluru; editing by Ramakrishnan M.)

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