Investors in China funds have been suffering in the past year but, with the long-anticipated Beijing Olympic Games opening this week, could this be the starting gun for a period of growth, or will we see some post-Olympic blues?
The Association of Investment Companies (AIC) has looked at the impact of the Olympiad on the Chinese economy by collating the views of investment company managers with holdings in China. In general, these managers are positive about the future of China, believing that the Olympics will promote the country and its economy in an good light. Moreover, they believe that China is set to be the world's economic power house for decades to come.
John Millar, manager of Martin Currie Pacific, explains the background: "The Olympic games have provided a major economic boost to the Beijing region. The 2008 Olympics represents the second largest public works project ever undertaken in China. Beijing has spent $34bn (£17bn) to build the Olympic village, improve its transportation and telecommunication infrastructure, restore historic heritage sites and create a cleaner environment."