Last night, Tim was on CNBC Asia talking about China and reiterating that China is not a macro call as much as you are looking for bottom consumption plays.

Tim Seymour Interview on CNBC May 28Our Chinese Internet Index (EMCHI) captures some of that growth, but outright we like Tencent (TCEHY, quote) and Baidu, (BIDU, quote) on growth valuation tradeoff.  

We also think multinationals are delivering in China and are more focused on the Chinese consumer than they are other global consumers.  See recent earnings by Tiffany (TIF, quote), Nike (NKE, quote), Starbucks (SBUX, quote) and even the automakers.

China is not going to be a driver for a resource rally across the world this year, but investors cannot lose sight of the small consumption growth that when played out over 1.3Bn population means there is plenty of aggregate growth to buy into.


Tagged with:

Leave a Reply