Asian-based private fund, "Sun Worldwide", is reportedly evaluating stocks in Chinese companies within key sectors with a view to stepping up acquisition activities.
Despite widespread speculation that the world’s 4th largest economy would suffer a devastating fall in growth because of the recessions in its key export markets, sources close to Sun Worldwide suggest that the Chinese economy would likely grow at between
7 and 8% in 2009 thanks to a raft of forthcoming stimulus measures."Sun Worldwide" apparently set great store by the fact that China will not need to issue government debt to finance its stimulus packages as its foreign currency reserves are reported to be close to $2 trillion.
A source familiar with analysts at "Sun Worldwide" said that the firm is buying the nation’s consumer, health care and banks this year and have advised clients to continue to avoid stocks in US counterparts.
