Some examples I have noticed are; an American equity fund manager who told us that the fund has considerable holdings in household name American multinationals. He feels they will benefit from increased Chinese income and therefore greater consumer spending. The fund manager identified American fast food chains as an area that will really prosper from expansion in China with a new consumer market.

Last week in a meeting with a BRIC (Brazil, Russia, India and China) fund manager we were told that following China overtaking the US to become Brazil’s major trading partner last year, Brazil offers fantastic growth potential. There were admittedly a number of rationale given for investing in Brazil but close links with China were highlighted as one of the main attractions.

Most recent was a Japanese fund manager who described how a potentially strong Chinese Yuen (if/when they decouple from the US Dollar), coupled with an increase in demand for electronic products and motor cars among a growing Chinese middle class, mean there is excellent value to be found among many Japanese companies that provide these upmarket consumer goods.