China struggling to achieve a soft landing

asia

With 15 million new workers that need to be employed each year, the government needs to maintain strong GDP growth but there is a danger low interest rates could lead to over-investment and a subsequent hard landing

China emerged as a major investment theme during 2003 with new funds and new investment opportunities opening up for both institutional and individual investors. The attractiveness of China was evidenced by growing foreign direct investment, exports and bank lending which fuelled GDP growth. Additionally, the country's demand for raw materials has had a major impact on global commodity prices and shipping rates. Last year saw GDP growth reach 9.9% annualised in the fourth quarter and returns in the market have been equally impressive. The MSCI China Free index was up just shy of 80% in d...