Architas Multi-Manager's Nathan Sweeney asks has the market taken its eye off the ball when it comes to China?
I am referring to the gradual depreciation of the Chinese renminbi, which has been the catalyst for the aggressive routs in global markets over the past year. What do we know? We know growth in China is slowing. We also know companies in China are severely indebted and companies are struggling to cover even the interest payments on their outstanding debt with their current profits. This means they need to issue more debt, which will not end well. The expectation is that the Chinese government can engineer a ‘soft landing'. History will tell you that this rarely happens. That is why it...
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