'It would be a mistake' to overinvest in China

25 March 2011

Overinvesting in China would be a mistake, as the market will eventually begin to lose pace, it has been claimed.

Speaking at the world's largest watch fair in Basel, Switzerland, Thierry Stern - chairman of Patek Philippe - advised Swiss watchmakers against focusing solely on the Asian country, Bloomberg reports.

The industry figure claimed he will refrain from putting all of his eggs in one basket.

He explained: "It's a big mistake I think that a few brands are doing by going only in China. They focus everything on China and it's dangerous."

The situation should remain stable for three or five years, Mr Stern observed, adding "something" is likely to happen in the period after that.

According to the Federation of Swiss Watchmaking, exports of Swiss timepieces to China increased by 57 per cent in 2010.

It was recently reported that investors are still placing money into China-focused hedge funds, despite a tightening economic climate and sluggish performance.

By Claire Archer

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