Mark Mobius, executive chairman of the Templeton Emerging Markets Group, which has $25 billion in assets under management, has been investing in developing nations since 1987 and says that China is still a powerhouse.
Mobius, who in 2006 was named by Asiamoney as one of the Top 100 Most Powerful and Influential People and one of the Top 10 Money Managers of the 20th Century by Carson Group in 1999, oversees the Templeton Developing Markets Trust, which has returned 22.39 percent year-to-date. An investor who invested $10,000 in the fund at inception in 1991 would have about $42,500 today, according to Morningstar.
At the moment, he has 21.9 percent of his fund invested in China.
"Sentiment has been very negative towards the country, which is not justified on the ground," he said. "It continues to grow at a very high rate for an economy at that size."
While its GDP isn't expanding at the 10.6 percent rate that it was in 2010, it's still growing far faster than many other countries. On Oct. 18 the National Bureau of Statistics in China revealed that it grew by 6.7 percent year-over-year in the third quarter, which was in line with analyst expectations.
As well, it still has a population of 1.4 billion people, many of whom are now starting to seeing their incomes grow.
"Don't forget that," he said to the many naysayers who think China is passé.