Summary: Fidelity Asia portfolio manager Anthony Srom is underweight China, concerned that investors are pinning hopes on government stimulus and not factoring in the risks. Although he says there are interesting pockets of the Chinese market, he points out that return on capital in India is higher. The fund is holding slightly more cash than normal as markets rally.
Key take-out: Srom takes the view that the Chinese government has lost control of the economy, as stimulus is not getting traction. Although the index has rallied, performance has come from multiple expansion.