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HONG KONG, Nov 18 (Reuters) - HSBC Global Asset Managementexpects emerging markets to play catch-up with stocks in thedeveloped world, with Chinese shares well positioned to lead therebound, a top strategist at the $419 billion money manager saidon Monday.
Bill Maldonado, the chief investment officer in Asia-Pacificfor HSBC Global, said China's reform agenda has furtherreinforced his confidence about investing in the country. Healso favours cheap South Korean shares.
"Valuations and profitability are very good in emergingmarkets and right now developed markets are looking pretty fullyvalued," Maldonado told the Reuters Global Investment OutlookSummit in Hong Kong.
Maldonado said while China's consumer sector shares were expensive and got more pricey after a sharp rally on Monday,industrial sector stocks offered the best opportunities.
He said that China would lead a rotation into emergingmarket stocks because "it's one of the cheapest emerging marketsin the world, and it's one of the most profitable." (Follow Reuters Summits on Twitter @Reuters_Summits; Reportingby Nishant Kumar, Michael Flaherty and Elzio Barreto; Editing byChristopher Cushing)