Q: Is MFC a good way to play China and the rising middle class while avoiding the governance issues of Chinese listed companies? At 38%, could the China exposure give it an edge in growth over SLF?
5i Research Answer:
Asia is a large component of its business, certainly. It does create an opportunity, and MFC is not in danger of being de-listed. But, there is still a 'China discount' on many stocks that have significant exposure. It creates an opportunity, but we would not say it is 'better' than SLF because of this. There are also risks.