There is a good deal of optimism about prospects for the Chinese economy, a major organisation has asserted.

There is a good deal of optimism about prospects for the Chinese economy, a major organisation has asserted.

The Association of Investment Companies has compiled and analysed a number of hedge fund managers' opinions on these questions and concluded that many believe the Asian economies have weathered the economic downturns well.

Despite this, there was some concern that the country's economy has been growing too fast and could expect to see a number of problems.

Mike Kerley, manager of Henderson Far East Income, claims that the country's strong fiscal position means it is well positioned to get through periods of instability reasonably unscathed.

He states: "The main risks lie in too much growth rather than too little which could ultimately be inflationary and lead to more aggressive policy response than we currently expect."

The Royal Institution of Chartered Surveyors recently reported that investment funds have been seeing a rise in activity in the property market across most countries, with the exception of Japan.