Anthony Bolton of Fidelity Investments dismisses the notion of a China 'bubble,' believing it's "overstated" as he intends to launch his fund in late February.

According to the Daily Telegraph of London, "Anthony Bolton, the legendary fund manager, said that he sees in China the many similarities he saw investing in Europe in the early part of his career and added that concerns over a China 'bubble' have been 'overstated.'"

The offer period for this eagerly anticipated 'China special Situation' investment trust will open February 26 and close on april 5. The trust that wil start trading - subject to approval - on April 19, will be eligible to Isa investors.

Fidelity is targetting an initial capital raising of about $1 billion and announced that the trust will invest in a diversified portfolio consisting primarily of securities issued by corporations listed in China or Hong Kong and Chinese corporations publicly-listed elsewhere.

The Telegraph quotes Bolton as saying that, "when I started, my longer-term-research-led approach was considered unusual in a market more used to short-term trading, but it proved to be successful. I think the same will be the case in China and I expect that my experience in Europe will be helpful as I see the competition of the market shifting from an emphasis on manufacturing and financials to include more service-oriented companies."

Mr. Bolton contends that history reveals that many developing economies experience acceleration in their growth, the moment GDP per head reaches a critical level, a phenomenon known as the 'S' curve effect.

Mr. Bolton confessed that this development has caused some inflationary fears and whether an asset price bubble is starting to develop. Yet, he believes that these worries have been "overstated."

To read the entire article from the Daily Telegraph of London, link here:  To learn more about Fidelity Investments' China mutual funds, link here:

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