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Mobius Reveals 2011 Investment Strategy for China

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Saijal Patel and you're watching “Asia Market Daily”.

Floods in Australia have now shut down 75 percent of Queensland's coal mines, and caused catastrophic damage to the state's infrastructure.

More than 200-thousand people have been affected by the disaster, and authorities are now warning people to stay out of the floodwaters - with snakes and crocodiles washing up into homes and shops.

Queensland is the world's biggest exporter of coal used in steel-making, and analysts now expect spot prices to move sharply higher, as Asia's steel mills try to find new suppliers.

The state's Resource Council says an estimated $1 billion dollars has been lost in coal production.

And it's not only coal prices that are rising as a result of the crisis, the cost of wheat is also expected to skyrocket.

(SOT) Andre Julian, CFO and Senior Market Strategist, OpVest Wealth Management:

"I think it needs to be taken very seriously. You know a picture's worth a thousand words. I really haven't seen anything like that since the images of Katrina, when I saw the pictures coming out of Australia it was unbelievable. We were looking to Australia to make up a lot of the shortfall that was coming out Russia and so I think it's going to really impact the wheat prices tremendously over the coming year."

Elsewhere, investing in emerging markets is tough potential high returns usually come with a big risk tag as well.

Take China for example. While its economy is still showing stellar growth, the performance of its stock markets were pretty dismal last year.

In 2010, the Shanghai Composite fell more than 14 percent, one of the worst in the region.

So in a first on CNBC interview, we asked emerging markets guru Mark Mobius what his picks are for the China market in 2011.

(SOT) Mark Mobius, Executive Chairman of Templeton Emerging Markets Group:

"If you look at our portfolios you'll see Brazil at the top, followed by India, and then China and then Russia, so China is definitely up there. Going forward we think there's going to be a lot of opportunity in China. Of course you know we have to look at individual stocks rather than the market as a whole. Our main focus by the way is on oil and gas in China, and also on consumer stocks. So it's really commodities and consumers that we see find the opportunities in China."

Thanks for watching “Asia Market Daily”.

I'm Saijal Patel from CNBC.

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