FX.co ★ Mobius: Don’t underestimate China’s economy

Famous American investor, Mark Mobius, in his interview to CNBC warned those who expect China’s economy to collapse not to underestimate the world’s second-biggest economy.
Despite the fact that China losses its steam it is too early to draw conclusions.
According to Mobius, China can increase the demand for raw materials, China’s banks can clean up their paperwork and as a result China will switch from production economy to consumption.
On the other hand, we cannot deny that the bullish trend on the market is justified. But anyway, the investor thinks that we shouldn’t expect China to be losing control. Beijing has enough resources and will stand against the collapse at any cost.
It is obvious that the country is in transition from production economy to consumption which can’t but resulted in a slowdown in the manufacturing sector. According to analysts, this will dramatically reduce the country’s demand for raw materials and other goods, but Mobius invests into Chinese oil companies and commodities anyway.
Mark Mobius thinks that foreign investors misunderstand the nature of China’s economy, if they think that the country will let the market cope with the economic realities. China will take more aggressive steps than the US or other countries would.