IP’s Shiao backs consumer staples, talks Chinese debt

Invesco Perpetual’s Asia ex Japan CIO Mike Shiao is backing consumer staples on confidence in the Chinese government’s ability to slacken the pace of its growing debt to GDP ratio.

IP’s Shiao backs consumer staples, talks Chinese debt

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The education sector is also of interest to Shiao, given its good pricing power.

“All Chinese students must pass a standardised test in order to qualify for university, which means that preparatory schools are very profitable because parents spend a lot of money on their children’s education,” he explained.

“There are lots of interesting segments in the consumer discretionary sector that aren’t strongly correlated.”

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