New Delhi: The China Forum in Hongkong is participated by 450 global, domestic investors from 25 countries and over 200 executives from 90 countries.
CEO at CLSA (Asia-Pacific), Rob Morrison, who is also attending the Forum, says interest in China continues, but interest for India has increased significantly.
About the current market scenario the world over, he says that people are well aware that in liquidity-driven markets, one has to face volatility.
Steep interest rate rise in the US may reduce liquidity and that will definitely have an impact on the emerging markets, he says.
But sounding positive, Morrison says that there is still a view that the underlying fundamentals in many of these markets still look good.
Excerpts from CNBC-TV18's exclusive interview with Rob Morrison:
Q: What is the mood on emerging markets now? Will India and China have comparisons that you make?
A:If you would have asked me this question two-three years ago, then I would have said the interest in China is certainly more than the interest in India. I don’t think interest in China has abated, at least we did not see that in the forum. But clearly, the interest in India has picked up significantly.
Q:How many investors turned up at the conference and did it signify a increase in interest?
A:We had about 450 global and domestic investors based over 25 countries. We had over 200 executives from over 90 companies in China and Hong Kong. So it was approximately the same as we had last year, but the difference between this year and the last year is that we did five days in Beijing, but this year we did two days in Taipei and three days in Shanghai.
Q:Were there concerns about the US economy overheating because as per last night numbers, there is an indication of inflation being a bigger concern there? Now if the Fed should up rates, then are there concerns that funds in emerging markets and markets like India and China will slow down?
A:If the Fed aggressively raises rates, then it is clearly going to be a big concern. The liquidity in the market is helping to drive prices and we are aware of the fact that liquidity at the moment is very significant. Steep interest rate rise in the US than what people are expecting will reduce liquidity and that will obviously have an impact on markets
In general, when we look at the Chinese market, the feeling is still very positive. They understand that there is a potential for a slowdown and we at CLSA are certainly calling off a slowdown next year. But at the same time, the quality of the companies present are very good and there is plenty of interest in the market. People are aware that in liquidity-driven markets, there will be period of volatility.
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