Big money managers target Chinese stocks

HONG KONG - John Pearce has returned to Sydney from a week in Hong Kong beaming, with one clear message of where to invest his next dollar: the Chinese mainland.

The chief investment officer who is in charge of A$60 billion ($48 billion) at Australian pension fund UniSuper Management Pty expects returns in Asian emerging-market equities to beat developed economy peers, extending an outperformance that is already underway.

The main reason: Chinese firms are driving profit growth set to exceed that in mature stock markets as it is coming from a lower starting point.