Plenty of good buys in China’s A-share market, fund manager says
Beijing's recent intervention in the market spooked some investors, but Oaktree Capital chief Howard Marks says they jumped without reason
Chinese stocks are attractively priced after the market rout, says Oaktree Capital, the world’s largest distressed-asset manager, pining long-term hope on the A-share market shrugging off slowing economic growth.
“We have found equities in China that have been worth holding,” said Howard Marks, 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 firm, headquartered in Los Angeles and with US$103 billion 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.
The mainland’s stock market has been volatile since the benchmark 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.