According to a fund manager at BlackRock, China's industrial stocks provide good investment opportunities on select markets, such as steel mills to cement producers. 

This was intimated by Jing Ning, Director and Portfolio Manager of BlackRock's US$1.4 billion China Fund, "We are not bullish, but taking somewhat of a contrarian view for industrial sectors because we see the inflection point in terms of demand and supply balance." She made the comments during an interview with reporters last Wednesday.

She declined to provide specific company names but identified firms with good balance sheets with a track record of controlling costs stands to provide the most benefit for investors.

Another issue she highlighted was the environmental concerns highlighted by the government, imposing 'special emissions restrictions'. A reduction in industrial sector capacities is now forthcoming because of the new regulations.

There is another area of the market she focuses on, such as banks. She may reconsider her positions if they return book values as China gradually recovers economically.