GO
Loading...

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.

Contact Closing Bell

  • Showtimes

    United States
    Monday - Friday 3:00P ET
    Europe
    Monday - Saturday 21:00 CET
    Asia
    Tuesday - Saturday 03:00 SIN/HK
    Australia
    Tuesday - Saturday 05:00 SYD
    New Zealand
    Tuesday - Saturday 07:00 NZ
  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is co-anchor of CNBC's "Closing Bell."

Subscribe