CMG First State s China pro makes the case for a much-maligned asset class.
Disdain is the common wisdom among foreign institutional investors toward China's B shares.
Those who sold too early and missed the past month's rally may rue their hastiness, but overall the market is too volatile and the companies too shoddy to stir much interest. One such bull is Liu Yang, director of China investments at CMG First State Investments in Hong Kong. She recognizes the scepticism many outsiders have toward B shares,but believes it is a misplaced victim of a 'China phobia'. She argues that half the companies with B shares are worthwhile investments. She notes that most foreign dedicated China funds, having cashed in on B shares, are moving into red chips and H shares.