In a CNBC interview on Thursday, June 18, 2009, Cabot China & Emerging Markets editor Paul Goodwin explained why he sees tremendous growth opportunities for western investors in China. Appearing on CNBC’s Closing Bell with Maria Bartiromo, Goodwin believes China is already leading the world out of the global recession.
The news segment, called “Counting on China” was kicked off with Bartiromo stating that the World Bank has boosted its estimate of Chinese economic growth this year from 6% to 7.25%. Goodwin responded by explaining that China is already emerging from the global recession, aided by its $585 billion stimulus package. The Chinese government, said Goodwin, is taking the economic slowdown very seriously and is hugely motivated to get its growth back up to 10%.
Goodwin pointed out that while factory growth in China is down now, it is still producing gains-a good set up for when the recession eases. He’s already investing in China, and considers the market correction to be an opportunity to buy strong Chinese stocks at good prices.
Although not a sector investor, Goodwin believes Chinese tech stocks offer good value and opportunity. He also named Fuqi International (FUQI)–a Chinese jewelry company benefiting from the Chinese custom of using jewelry to store families’ wealth.
Goodwin was joined in the interview with Andy Bush of BMO Capital Markets.