Julian Chillingworth, chief investment officer of Rathbone Unit Trust Management, analyses the drivers behind recent strong performance for Chinese equities and foreign investors' apparent reluctance to jump on board
A bull has been let loose in the China shop over the past six months, with the MSCI China index soaring by over 30%. This is more than double the return of the MSCI World index over the same period. In addition, the Shanghai A-share index has swelled almost 90%. So where has the bullish sentiment come from? It is no secret Chinese economic growth is slowing, no matter how much the authorities might try to fudge the numbers. Historically-accurate indicators suggest the official estimate of growth is very flattering indeed. Exports have, on the whole, strengthened so far this year; ho...
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