China at inflection point as bears start to lose their growl

ON ASIA

Neptune's Douglas Turnbull says the bull case for the country is starting to emerge.

It has not been hard to make a bearish case for China over the past 18 months. However, when one explores the key elements, a new picture emerges. The first major bearish point has been the tenor of government policy. China's economy is very policy driven by global standards. This feeds through into the stock market, and while it is at its most heightened on the domestic bourses, Hong Kong-traded stocks are not exempt. Therefore, one can understand the stellar performance of the region from late-2008 to mid-2009 in the context of massive government stimulus. From mid-2009, that stimul...