Three Chinese growth stocks to buy

There are good, long-term, defensive opportunities in China, says professional investor Sandra Crowl. Here, are three to tuck away in your portfolio.

Each week, a professional investor tells MoneyWeek where she'd put her money now. This week:Sandra Crowl, Member of the Investment Committee at Carmignac.

Up until November 2014, the Chinese mainland stockmarket had been in a six-year slump, weighed down by poor corporate earnings, low investment, and excessive debt. Following the first interest-rate cut by the Chinese central bank, that all changed. The government openly encouraged cheaper money to finance investments in the local Shanghai and Shenzhen exchanges, thinking that stock gains would promote growth. Trading accounts multiplied, as did leverage (loading up on debt to buy stocks). There wasn't a hairdresser or shoe shiner in sight as they abandoned their posts to spend more time punting the bourses.

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Sandra Crowl is a member of the Investment Committee at Carmignac.