Fund managers paint positive 2013

Chinese fund managers are painting a positive outlook for 2013, based on a recovering macroeconomic situation and the expectation of higher stock market yields.

On a day when Asian markets slipped in holiday-hit trade, with investors unmoved by a slight improvement in key economic indicators out of China and Tokyo, experts told China Daily they expect Chinese stock markets to warm this year.

Liu Qingshan, the investment research director at Manulife TEDA Fund Management Co Ltd, said investors were likely to have more confidence as infrastructure construction and urbanization projects further push domestic demand.

Cao Xiongfei, the chief investment officer of Dacheng Fund Management Co Ltd, said that companies in various sectors may see potential growth, including those involved in pharmaceuticals, environmental protection, manufacturers with niche-market technologies and innovative service providers.

Their comments came as the latest official data showed manufacturing activity expanded at its fastest pace in almost a year last month, indicating China's economy was showing signs of improvement.

According to the latest reports from 70 fund management companies in China, compiled by TX Investment Consultancy, the financial information provider, a total of 1,274 funds reported combined profits of 126.7 billion yuan ($20.4 billion) last year.

Principal guaranteed funds saw a combined net return of 1.94 billion yuan, 75 times that of 2011, thanks to a stable recovery in the bond market.