“The problem with Chinese consumption stocks is that they’re incredibly expensive,” says Kerley, who manages a number of Asian income funds for Henderson Global Investors, including its Far East Income Limited and New Star Asian Dividend Income unit trust. 

“Although there are lots of good companies there, in food, milk, beer, all these kinds of things – which are great plays on the Chinese consumer story – the space is actually quite small, and they all trade on very high multiples.

“So although I love the idea, I can’t really justify investing in these companies at 30, 40, 45 times earnings.”

Instead, Kerley believes the best way to gain exposure to China’s growing discretionary consumption is to invest in property (not a bubble yet, he says, except in certain markets), banks, and those sectors that are tipped to do well as the traditionally thrifty Chinese begin to un-learn their savings habit.

“It is going to take time for the Chinese to stop saving so much, and to begin to spend more,” he notes.

“And in the meantime they need to bridge this gap between export [demand] and consumption. I think they’ll continue to do that through spending on infrastructure – healthcare facilities, hospitals, roads, bridges, railroads and ports.

“So until I can get consumption stocks at the right price, I’m happier to stick with these, until we get to the consumer story. And hopefully by that point we’ll be able to buy those stocks at a more reasonable valuation than they currently are.”

Kerley is upbeat about the outlook for dividend growth in Asia, where he says company executives are increasingly aware that shareholders prefer dividends and share buy-backs to them ploughing profits back into their businesses. He says he regards his competition as funds in the UK equity income fund arena, where some £27bn is invested, rather than other Asia-focused funds. The Asian equity income universe currently totals around just £800m.