11:10:54 | 10 March 2010
Henderson's Asian equity income specialist Mike Kerley believes fears of a rising asset bubble in Chinese property are overdone and is currently accessing the theme across his funds.
Kerley, who currently manages the New Star Asian Dividend Income and
Henderson Horizon Asian Dividend funds points to data which suggest that only 10% of housing stock in tier one cities in China has been replaced since housing reform in 1996. With 90% of housing stock over 15 years old, he highlights the potential for new construction projects alongside a supportive government policy.
Kerley has been increasing exposure to a number of property companies which he says look attractively priced, having been sold down on the back of concerns about the effects of tightening monetary policy.
Key holdings in the sector include Shimao Property, a developer in tier two and tier three cities, and Hong Kong's largest real estate investment trust (REIT) Link Reit.
Kerley is also bullish on the dividends of a number of Asian banks, highlighting Bank of China, ICBC and DBS Group Holdings which are all yielding 4% or over. Alongside financials he is currently backing Korea-based KT Corporation and Chunghea Telecom, alongside Jiangsu Expressway company, which is involved in the construction and management of toll highways in the Jiangsu Province in China.
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Chinese property backed as income source | Fund Selector | Citywire
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