China presenting other Asian opportunities
By Darin Tyson-Chan
Wednesday 18 August 2010
The importance of China in regard to investment opportunities extends beyond its own borders in the Asian arena, according to the chief investment officer of an international fund manager.
Treasury Asia Asset Management's Peter Sartori cited mainland China's improved relationship with Taiwan as being an example of this dynamic in action.
"One opportunity at the moment that we are positioned for and that has done well for us recently is with Taiwan companies that are about to be benefiting from a much improved relationship with mainland China," he said.
Sartori explained that for many years the Taiwan economy and stock exchange had lagged behind the rest of the world as a result of China treating it as a renegade state of the mainland.
One specific area where investment opportunities are presenting themselves is tourism, Sartori said.
"Up until two or three years ago there was no direct flight from Taiwan to China. So if you were in Taipei and wanted to go to Shanghai, which is an hour and a half flight, you'd have to go via Hong Kong or Seoul which turned into a five hour trip," he said.
This situation is about to change with direct flights soon to be opened up between China and Taiwan once a set quota of flights is satisfied.
Sartori said he anticipates mainland Chinese have a healthy desire to visit Taiwan in the same way they have embraced the ability to visit Hong Kong.
"Around about 30 million mainland Chinese visit Hong Kong per year at the moment and that's a huge driver of the Hong Kong economy," he said.
"And we think the Chinese will find Taiwan as a much more desirable destination."
The increase in tourism would in turn drive development of major cities like Taipei that haven't had new hotels built within them for a significant number of years, Sartori said.
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