HONG KONG (Reuters) - HSBC Global Asset Management expects emerging markets to play catch-up with stocks in the developed world, with Chinese shares well positioned to lead the rebound, a top strategist at the $419 billion money manager said on Monday.
Bill Maldonado, the chief investment officer in Asia-Pacific for HSBC Global, said China's reform agenda has further reinforced his confidence about investing in the country. He also favours cheap South Korean shares.
"Valuations and profitability are very good in emerging markets and right now developed markets are looking pretty fully valued," Maldonado told the Reuters Global Investment Outlook Summit in Hong Kong.
Maldonado said while China's consumer sector shares were expensive and got more pricey after a sharp rally on Monday, industrial sector stocks offered the best opportunities.
He said that China would lead a rotation into emerging market stocks because "it's one of the cheapest emerging markets in the world, and it's one of the most profitable."
(Follow Reuters Summits on Twitter @Reuters_Summits; Reporting by Nishant Kumar, Michael Flaherty and Elzio Barreto; Editing by Christopher Cushing)