Will patience with China be rewarded?

Investor confidence in the outlook for China's economy has surged to a three-year high, according to the BofA Merrill Lynch Fund Manager Survey for November.

A net 51% of investors polled believe China’s economy will strengthen in the coming year; the highest reading since July 2009. This monthly upswing, from a net 5% in October, represents the largest single-month increase since February 2009. Investors’ dramatic change in sentiment reflects a broader optimism about the global economy and equity markets as “momentum has gathered behind the idea that we are on the cusp of a ‘great rotation’ out of bonds and into equities”, according to the survey. However, the leadership handover to Xi Jinping has clearly provided a much needed boost for...