New York (HedgeCo.net) – All of the attention on the Chinese stock market as well as its currency and economy has some investors shying away from investing in the country. That isn’t the case with Marco Polo Pure Asset Management. In a recent interview with Bloomberg, Marco Polo’s CEO Aaron Boesky made a case for a strong fourth quarter in Chinese stocks.

“The underlying liquidity in China and the fundamental valuations for the market should lend themselves to a strong fourth quarter,” Boesky said. The company’s Marco Polo Pure China fund has gone through a volatile period just as the overall market in China has, but Boesky expects government regulations to boost the economy.
“It’s been a wild ride,” Boesky stated. “Our position is to be defensive over the next few months until we see the sentiment recovering and the margin issue resolved.”

Saying the Chinese market has been on a wild ride is putting it mildly. After doubling from November through June, the Shanghai Composite Index fell 32% in under a month from the June high to the July low.

Rick Pendergraft
Research Analyst
HedgeCoVest