Summary
- China’s macroeconomic indicators are signalling a positive inflection point, however the debt overhang highlights a looming risk.
- China needs to maintain the balancing act between its new consumption led economy and slowing investment driven economy to stem the pace of credit expansion.
- Chinese stock market valuations are disguised by low earnings multiples of the state owned financial sector.
- Greater transparency and clarity of communication about policy is the only way to draw international investors back to the Chinese Equity markets.
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