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China Selloff Called Short-Term Blip

The Shanghai Composite Index plunged 6.5% Wednesday after another Chinese market adjustment, but George Greig, manager of the $1.3 billion William Blair International Fund, remains bullish on China.

The sell-off is a short-term blip, Greig told CNBC’s Maria Bartiromo on “Closing Bell.” He explained, “The government in China is interested in restraining speculative activity… They want to send the message that stock price gains are not automatic.”

China is a key market for the whole world, he pointed out: “It’s too early to talk about taking money off the table,” he said. He pointed to consumer and financials as top sector holdings in China.

Emerging markets like China, Greig explained, lead the charge in terms of market performance and earnings growth. Strong economic momentum is largely driven by low inflation and interest rates in those countries.

What's more, a growing number of multinational firms are “beneficiaries of globalization,” Greig said. L’Oreal, for instance, gets some 25% of business from emerging markets.