John Wong, lead portfolio manager for the Asia Opportunities Strategy at Oberweis Asset Management, does not believe the unique growth story in China and greater Asia is coming to an end any time soon. Despite the pessimistic views spouted by some economists regarding China’s ability to continue its incredible economic growth spurt, Wong stays true to his long-term Asian investment strategy.
“Although Chinese growth has decelerated a bit, the second-quarter GDP numbers that China announced recently were still healthy,” said Wong, whose firm specializes in micro-, small- and mid-cap investing. “We believe that the Chinese government is less likely to introduce more tightening policies going into the second half of this year and may even ease some of their policies, which will help the overall sentiment in Asia.”
Wong believes the increasing number of privately held businesses emerging in China and Asia will drive the region’s economy for the next 20 years.
“There will be a number of Asian companies that will emerge as global leaders in the next 20 years, just as we saw with Japanese companies in the early 1970s and Korean companies in the late 1980s and early 1990s,” he said. “What’s happened over the last 10, 15 years is that the rice bowl in China was broken. This unleashed a drive in the Chinese people that we saw in the other Asian countries in the 1980s. What happened is that people upgraded their skills and learned to take risks to start their own businesses.”
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