China A-share's low valuations stand out among the world's major market indices

GDP growth in China for Q1 2016 hit a record low of 6.7% following a 21 consecutive quarterly downward trend. However, there are other economic indicators that may suggest the macroeconomy is showing signs of stabilisation, writes Miller Guo, CEO of GF International Asset Management (UK).

Fixed asset investment growth has rebounded since the end of last year, reaching 10.5% in Q1 2016, mainly driven by the continuing high growth of infrastructure and real estate investments. We saw a year-on-year growth of 19.3% in infrastructure investment in Q1, with expectation of continuing strong growth. Real estate investment growth jumped from 2.5% in Q1 2015 to 8.2% in Q1 2016. However, manufacturing investment continues to slide, with first quarter year-on-year growth of only 6.4%. While infrastructure and real estate investments helped stabilise the economy in Q1, China's eco...