What is driving China's growth story?

CHINA

Stuart Parks, head of Asian equities at Invesco Perpetual, on why despite the current slowdown he remains confident in China's fundamental strengths.

China’s economic growth model over the last decade has been simple and effective: export led growth supported by large amounts of fixed asset investment. However, export markets are likely to remain subdued for some time, and China’s share of world trade, although still growing, cannot continue to increase at such a strong rate, particularly with wage growth reducing low end competitiveness. Fixed asset investment is also unsustainably high and the country is in danger of building roads to nowhere. However, this is not the end of China’s growth story. The days of constant growth at rates...