NewPlenty of good buys in China's share market, fund manager says
While Beijing's market intervention spooked some investors, distressed-asset manager Oaktree says the stocks are good for the long term
Chinese stocks are attractively priced after the market rout, says Oaktree Capital, the world's largest distressed-asset manager, pinning long-term hopes on the A-share market and shrugging off slowing economic growth.
"We have found equities in China that have been worth holding," said Howard Marks, the chairman of Oaktree, which has more than US$5 billion invested in greater China. "We strongly believe in the A-share market."
It was less attractively priced when the benchmark Shanghai Composite Index was at 5,200 points, but there were good buys at the 3,100-point level, he said.
The company, headquartered in Los Angeles and with US$103 billion worth of assets under management, specialises in corporate and distressed investments such as non-performing loans.
"We have a substantial position in Chinese equities today and we are very comfortable," Marks said.
Investing in good companies at attractive prices was "easily accomplished today", he said, adding Oaktree's investments were mostly in listed equities.
China's stock market has been volatile since the Shanghai Composite Index peaked on June 12 at 5,178.19 points. It fell as much as 40 per cent last month, despite a slew of measures launched by the government.