Hugh Young of Aberdeen Asset Management sees plenty of opportunity among emerging marke...

HUGH YOUNG OF ABERDEEN ASSET MANAGEMENT SEES PLENTY OF OPPORTUNITY AMONG EMERGING MARKET CORPORATES, BUT IS SKEPTICAL OF THE QUALITY OF CHINESE COMPANIES.

SHOWS: SINGAPORE (JULY 31, 2013) (REUTERS - ACCESS ALL)
HUGH YOUNG, MANAGING DIRECTOR, ABERDEEN ASSET MANAGEMENT ASIA LIMITED
1. REPORTER OFF CAMERA SAYING:
"You have been skeptical about China for a long time. How much is China weighted in your EM portfolio? "
2. HUGH YOUNG SAYING:
"Very little of our view on emerging markets depends on China. We are skeptical of China as you rightly say. But particularly skeptical of the quality of Chinese companies. So that's been our big issue. We cannot find that quality of companies that makes us want to commit money to China, which is completely different from our view on India. As far as the economy in China is concerned, yes it is important not only to other emerging markets but indeed to the world as a whole. And China is clearly slowing quite dramatically. So China is not going to be a huge help to the rest of the world, which is trying to struggle out of recession and into recovery. So you're not going to see great stimulus from China. But that does not diminish our enthusiasm for great companies elsewhere in the emerging market region. And indeed were we able to find good companies in China we would still happily invest in China now even with the economy slowing."
3. REPORTER OFF CAMERA SAYING:
"Where do you see growth stabilizing for both China and India?"
4. HUGH YOUNG SAYING:
"Well as far as growth is concerned, China this year will come in with its almost-guaranteed seven and a half percent. Underneath that you're looking at far weaker growth in reality. It's very hard to estimate what that growth is. I think one has to be suspicious of many governments' prognostications of growth and how they calculate growth, particularly areas like China. India, the growth is clearly slowing. How slow can it get, one can never tell. If governments and government actions are paralyzed and if one sees - as one has historically in India - businessmen saying actually to me, it makes no sense investing in India and it makes far more...