Top China stock picker sees sustained rally in shares of commodity producers

Shares rally: A file picture showing a worker loading coal on a truck at a depot near a coal mine in Heilongjiang province, China. China’s move to cut coal output is supporting advances by commodities and machinery makers. – Reuters

HONG KONG: The rally in Chinese commodity producers has further to run for at least one top stock picker.

A gauge of raw materials shares on the MSCI China Index has jumped 24% this year, the second-best performance among 10 industry groups. Mandy Chan, who manages US$8bil worth of assets in Chinese and Hong Kong equities for HSBC Global Asset Management, says improving profits, increased government spending and output cuts will support the advance by commodities and machinery makers.