Investors need to stick with China despite all the negative headlines about its slowing economy, said Karyn Cavanaugh, senior strategist at Voya Financial. 'Whether it is 7% or 5% growth, nobody knows for sure, but overall they are still growing,' said Cavanaugh. 'It’s a great long term opportunity. Every company that wants to grow wants a footprint in China.' Worries over the Chinese economy were highlighted again this week when the preliminary Caixin China manufacturing purchasing managers' index (PMI) fell to a six-and-a-half-year low of 47 in September. This compares with a final reading of 47.3 in August, which was the lowest since March 2009. A reading above 50 indicates an expansion in activity while one below points to a contraction. On Tuesday the Asian Development Bank slashed its estimate for China's growth to 6.8% for 2015, down from its prior forecast of 7.2% and below last year’s 7.3% growth rate. The bank forecast growth in China to drop to 6.7% in 2016. Elsewhere, Barclays chopped its China growth outlook Tuesday to 6.6% and 6% percent for 2015 and 2016, down from 6.8% and 6.6% previously. Despite all the gloomy predictions, Cavanaugh said the world’s second largest economy will right itself once its more than one billion consumers start spending.
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