RISE OF CHINA TO DRIVE GROWTH IN ASIA, SAYS ANALYST

KUALA LUMPUR, Nov 11 (Bernama) -- The continuing rise of China will help
drive economic growth and development in Asia in the long term, according to an
economic analyst.

David Ng, chief investment officer of HwangDBS Investment Management Bhd
(HwangDBS IM), said he was confident that a sustainable economic recovery would
take place in Asia (excluding Japan), mainly with China as its driving force.

"We also foresee that plenty of Asian-themed investment products will be
made available to the public which we believe will feature strong upside
stories," he said in a statement Wednesday.

HwangDBS IM is a leading investment management company which currently
manages both corporate and retail funds.

Ng said a new pecking order was emerging as a result of the financial
crisis, adding that "we are picking up more positive signs that point to a
definite recovery such as the narrowing of corporate spreads, a turnaround in
the global diffusion index and higher equity valuations or price to earning
ratios".

According to him, the current global economy is still relatively fragile and
economic growth is expected to remain below its potential for a few more
quarters before making its full recovery.

Ng said HwangDBS IM was bullish on the Asian markets, adding that growth
signals pointed to Asia as the most economically dynamic region in the world.

"China is at the front and is seen to be aggressive in its approach to
stimulating local growth and consumption. Increased lending by banks, higher
real wages, a booming middle class and growing individual wealth will inevitably
lead to higher disposable income and consumption," he said.

Ng said in the near future, companies in Asia would be able to generate more
income and over the long-term be considered lucrative stocks to hold as
dividends become a big part of the total returns.

"We have identified a few multi-year investment themes that will drive
long-term growth such as China's economic growth, the burgeoning global middle
class, ageing and changing population trends," he said.

"China is certainly our favourite pick. Its enormous government stimulus
spending of more than US$586 billion and aggressive re-leveraging will prompt a
rise in local asset prices."

Ng also advised investors to exercise extra vigilance in choosing suitable
products for themselves.

"Economic cycles are getting shorter and the pendulum swings both ways," he
said.

"Simple investment basics works in any economic environment. In today's
environment, investors should slowly average in the market and exercise
discipline once investment goals are met."

-- BERNAMA