5 Reasons Why You Should Invest in Public China Titan Fund (PCTF)!

1) Stablility
Larger corporations are better positioned to weather economic cycles due to their sheer size, stronger cash flows and dominance in their respective industries. Thus, an equity fund that focuses on large cap stocks can potentially offer attractive long-term capital growth by investing in large companies with strong track records. Due to their size, these companies are able to weather the impact of tougher economic conditions compared to their smaller counterparts.

2)Foreign Direct Investment
The Greater China region has benefited from significant inflows of foreign direct investments (FDI) with China accounting for the largest share. Thanks to its industrialisation drive, total FDI into China amounted to US$529.5 billion over the past ten years. Almost half of China's exports are currently produced by these foreign-owned enterprises. Investment spending, which accounts for 41% of China's Gross Domestic Product (GDP), has been growing at a robust pace of 20% per annum over the 2003-2006 period.


3)Major Importer and Exporter
Exports have been a major source of growth for the greater China economies. Hong Kong, Taiwan and China are among the most export-driven economies with exports contributing 167%, 63% and 36% to their GDPs respectively in 2006. China is a major destination for Asian exports with two thirds of China's imports sourced from Asia.

4)Consumer Spending
Higher standards of living have fuelled consumer spending in the region. In China, domestic consumer spending grew at a healthy rate of 14.1% per annum in the last four years. Consumer spending has been supported by the rising trend of urbanisation in Chinese cities with the urban population ratio increasing from 26.4% in 1990 to 43.9% in 2006.

5)Low Interest Rates
China enjoys a low real interest rate environment which is conducive for consumer spending and investments. Despite the recent monetary tightening measures by the central bank, real interest rates in China have continued to remain low at 0.8% currently.

The macroeconomic factors that contributed to the rapid growth of the greater China region are expected to continue driving the region's economic prospects in the medium-to long-term. The combined nominal GDP of the Greater China region's is estimated at US$3.2 trillion in 2006 accounting for 6.7% of global GDP and 34.3% of the Far East region's GDP.

Due to their significant revenues and strong share performance in the past year, three listed Chinese companies are currently among the top ten largest companies in the world based on market capitalisation (Source: Bloomberg, February 2008). These three companies are Petrochina Company Ltd., China Mobile Ltd. and Industrial and Commercial Bank of China (ICBC).

Petrochina Company Ltd., with a market capitalisation of US$576.7 billion as at 21 February 2008, has become the largest listed company in the world after its listing on the Shanghai stock exchange in November 2007.


Source from: http://www.publicmutual.com.my/page.aspx?name=article_080404_1045_pg01