ETF - Equity Research: The good, bad and ugly of Chinese markets

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.