The chief investment officer for the wealth management firm said that while China had “undeniably” been “suffering the pangs” from transforming its economy away from investment-led growth to consumer-led growth, investors had overreacted to its troubles.
He said: “Infrastructure will continue to be a key driver for the Chinese growth story. Therefore, many of the shares of the world’s leading mining companies now look relatively cheap.”
Mr Lowman acknowledged there could be further downward pressure in coming months, but he said “for long-term investors this might be an interesting entry point”.
He said investors were currently faced with a “rather mixed picture” on China’s economic trends, but encouraging data in April “has helped to calm the markets”.
“With this in mind, some fund managers are beginning to consider buying back into some of the commodity themes that had such a torrid time in 2013,” he said.
“Commodities, such as copper, which has fallen substantially from its all-time high, iron ore… and the price of gold bullion, which fell by 28 per cent last year, are all attracting new interest,” he added.
