Mark Mobius, executive chairman of Templeton’s Emerging Markets Group, rejects the growing fears about China’s economic outlook, arguing there is a transition being made to support future growth.
Mr Mobius, who runs the £10.6bn ($17.3bn) Templeton Asian Growth fund as well as six others, says: “There will be a transition to domestic consumption, but that will not happen overnight. Thereafter, domestic consumption will drive the economic growth. Plus, the consumption capacity in China is very high.
“The luxury that emerging countries like India, China, Brazil, Egypt and Russia have is a huge internal market that can drive growth. This is doubly true in the case of India and China. So, the transition from exports to domestic consumption can be very quick. Also, as trade among emerging markets keeps increasing, return on assets could get even better.”