China's economy continues to hold promise for investors, but fund managers are being cautious as valuations of Chinese shares soar. "There is no doubt that China's economy is strong relative to developed-market economies. Strong growth in bank lending, a boom in fixed-asset investment and resilient consumption are painting an attractive picture and encouraging investment in the equity market," said Nick Scott, BlackRock's CIO in Hong Kong for Asian equities. "However, this must be tempered with a note of caution."

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