China: Should we believe the hype?

CHINA

Only in the case of China do investors become complacent about a growth rate above 7%, but perhaps they have good reason.

With the world’s largest population and second largest economy, China grew at an average annual rate of over nine per cent in 2011, making it not just an important market in itself, but one with significant implications for global growth. Neptune’s models show just over half of the world’s growth so far this year has come from China. When China slows, so does the rest of the world. Given its role in the global economy, there was a collective sigh of relief when China released its third-quarter data in October. The major indicators point towards economic stabilisation. But where do we go ...