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By Ben Martin
Jan. 25 (Bloomberg) — Fidelity International’s Anthony Bolton, who is moving to Hong Kong to set up a fund, expects China to have “a lot” of initial public offerings in the service industry in the future.
“What you’re going to see in China is a lot of IPOs, particularly in the service sector,” Bolton said today at a seminar in London on China and Asian emerging markets. “In my lifetime it will become the second-biggest stock market.”
Bolton, Fidelity’s president of investments, will return to managing money to run a new China fund after stepping down from day-to-day portfolio management in 2007. Soros Fund Management LLC, the hedge-fund firm founded by billionaire George Soros, plans to open an office in Hong Kong, a person with knowledge of the matter said two weeks ago.
Valuations in China are “in-line with the long-term average,” Bolton said today. “It’s not a place where the big stocks are very cheap, but I think outside the leaders there are opportunities for a stock-picker like myself.”
Bolton expects lower growth in America and Europe due to government debt and a lack of available credit, he said at the seminar. He also to said he doesn’t think there is a “bubble” in China. “In my definition of bubbles they take several years to happen,” he said. “The bear market cleaned the slate, so I think we start again when the bull market started in China, which was about November 2008. So we’re a year and a quarter into this bull market, I think that isn’t long enough for a bubble.”