Sir Martin Sorrell, CEO of WPP, remains an avowed “raging bull” on China despite the recent collapse in its stock markets.

“I am an unabashed bull,” he said as the advertising giant reported a 12 per cent rise in headline profits to £596m in the first half of the year. “You have to be an optimist in our industry. China is a 30-year growth story yet everyone jumps up and down about one quarter of decline.

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“Clearly their stock market was and is overvalued and there are concerns about indebtedness and the switch to a consumer-driven economy. But we are still forecasting 3.8 per cent growth for our mainland China revenues this year against 3.9 per cent last year and we saw 5 per cent growth in July.”

Sir Martin said the group was performing strongly in the current “tsunami” of advertisers repitching their accounts. He said: “It’s hand-to-hand combat out there with consumer groups having no pricing power because of low inflation so they are looking at marketing and advertising costs.”

In 2016 the advertising industry will benefit from the so-called “maxi-quadrennial effect” of the Olympics, Paralympics, US Presidential Election and Uefa Euro Championship. Sir Martin said: “Whatever else, Rio will be a visually stunning games while the Presidential election is always a stimulus.”

See the article in full from the Independent here.

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