JP Morgan Chinese Investment Trust expects to see growth in China

For the rest of 2010, J.P. Morgan Asset Management reminds investors that short term risks will not change China's long term growth prospects.

The Managers of the JPMorgan Chinese Investment Trust, the only UK investment trust to focus purely on investing in Greater China (comprising China, Hong Kong and Taiwan), believe that we will continue to see more upside in equity markets in 2010.

The investment trust manager, who has experience of investing in the region for forty years, say that they expect the Chinese economy to expand in 2010 by almost 10%, faster than any other major economy, and that China will be the backbone of a positive Greater China theme.

Howard Wang, lead manager of the sixteen year old JPMorgan Chinese Investment Trust said, "China is undergoing a transition, with growth increasingly led by domestic consumption and infrastructure investment, instead of exports. This is particularly evident in rural China, and is the structural theme supporting China's economy over the medium term".

Mr Wang went on to say, "We agree that the market may be volatile in the short term as concerns are raised over the ending of easy monetary policy in China. However, we believe that market volatility will offer attractive entry points to investors, as the long term structural growth of China remains strong. Sectors we currently favour include financials, property, consumer, technology and commodities. These stocks are trading at attractive valuations and offer investors solid growth prospects. We are underweight ex-growth companies such as telecommunications stocks at present. However, our overlying view is mainly focusing on stock picking attractively valued companies that capture the positive domestic market growth in China."

The JPMorgan Chinese Investment Trust generated a return to shareholders of 61.5% and a return on net assets of 50.9%, while the benchmark, the MSCI Golden Dragon Index, returned 48.4% for the 12 months to the 31st January 2010.  For the three years to 31st January 2010 the investment trust's share price appreciated 53.2%, the net asset value 51.1% and the benchmark returned 40.3%, also to 31st January 2010.