While recent economic data out of China has painted a grim picture of the world’s second largest economy, Mark Mobius says he’s not worried about a hard landing. “I’m not worried because at 6 or 7 percent [growth], it’s [still] huge,” Mobius, the executive chairman at Franklin Templeton, told CNBC on Tuesday.
“If you look at the growth when they were at 10 percent growth back in 2010 – they were adding about $848 billion to the economy. At 7.7 percent you’re adding $986 billion. The numbers are very, very large. Even with lower percentage increase the dollar value is increasing,” he said. China’s economy grew 7.7 percent in 2013. The government has set its growth target at 7.5 percent this year.
The emerging markets guru is equally sanguine on the outlook for Chinese equities. “With the A shares being listed in Hong Kong, it’s going to be a lot of interest in buying more into the A shares and that will increase the overall size of interest and generally opportunity for China,” he said. “So I would think the outlook is pretty favorable.”
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