China - a bubble waiting to pop or still a worthwhile investment?

China has caught a lot of investors by surprise over the past 12 months.

While the US, Europe and Japan have experienced declining GDPs and crashing stock markets China’s economy has continued to expand. Chinese stocks in Hong Kong are up about 150% from their November 2008 bottom. Economic activity has slowed down considerably when compared to 2007/2008 and exports have suffered a brutal decline. But China is very likely to meet or exceed its GDP growth target of 8% for this year and is on track to grow at least at the same rate during 2010. Contributing to this robust economic performance is undoubtedly the vast economic stimulus programme by the Chinese go...