He said: “If you can move to a consumer-led economy then you remove that tension and pressure of having to devalue your currency.
“I think China is in relatively good hands, doing a good job of stabilising its currency and pushing through reforms to become that consumer-led economy. It is happening at its own pace but the journey of travel is known and reassuring.”
The other emerging markets can flourish through strong currencies, while controlling that strength through monetary policy and yet simultaneously allowing the population to borrow at cheaper levels in order to participate in growth across the consumer sectors.
de Blonay added: “[India’s] credit cycle is coming back to life, regulatory steps are being taken to help protect the asset quality, which is also a move forward.
“I also think that the asset quality down-cycle is coming to an end, with the credit being written of a higher quality. Lending growth is now much better quality than it was, which is better for the future profitability of financial services.”
Two companies he favours tapping into these trends include Dewan Housing Finance.
“The housing finance sector is in its infancy is a growing part of the economy.”
He also owns Yes Bank, which supports fast-growth sectors such as agriculture, life sciences and biotechnology by offering competitive banking solutions.
