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HSBC’s Philip Poole Sees Opportunity in China, Russia Equities

Equities in emerging markets such as China and Russia are attractive at current valuations, according to Philip Poole, head of investment strategy at HSBC Global Asset Management. He spoke on Bloomberg Television in Hong Kong.

On emerging markets:

“Even though the fundamentals are still strong and the growth prospects are so much better than Europe, they have sold off in many cases more than the European market.

“For investors who can take a two-year horizon or longer, we think the entry points in China, places like Russia in the emerging equity markets are very interesting.

“Corporate fundamentals are strong and credit spreads have widened. Some of the equities markets’ valuations look very cheap on a price-to-book basis. In reality, the corporate sector in much of the emerging world actually is in pretty decent shape.”

On Europe’s debt crisis:

“It’s a 10-year problem. It’s not a two-quarter problem. We still don’t see fully the route to a solution. There’s still more work to be done, it’s going to take time, and in the interim it’s going to be an overhang to the market.”

To contact the reporter on this story: Gan Yen Kuan in Kuala Lumpur at ykgan@bloomberg.net

To contact the editor responsible for this story: Darren Boey in Hong Kong at dboey@bloomberg.net

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