There is no denying the fact the China has risen metaphorically like no other nation has in the recent past. The Chinese growth model has not only attained enormous success for the citizens and investors worldwide but has also been an envious state for many other developing countries that have literally failed to do anything with their moribund economies, whereas the Asian giant successfully managed to bring about a change in common man's life.
China’s GDP has multiplied while exports have risen exponentially, so much so that the country has been labeled the factory of the world. But change is the only thing that is constant in this world, and same is true for the Chinese growth cycle. Whatever comes up goes down just as night gives way to day and life gives way to death. The problem is that just about everyone wants to go to heaven but no one quite wants to die, just as everyone is talking about the China growth story but not many are actually able to understand the haze of uncertainty surrounding the Chinese economy and its growth story.
* Even though China has attained enormous highs, the growth of 200 to 300% of past 2 decades has reached a critical point where the growth has attained a peak and the only way forward is an imminent decline.
* China's harsh reality is that after decades of double digit GDP growth, average household incomes still trail miles behind many emerging economies.
* Not only is China marching towards the greatest bubble in history of mankind, the massive misallocation of wealth is also accelerating at an alarming speed. One doesn’t need to be an economic genius to understand the fact that the wealth gap epitomized by the Chinese economy and Real estate segment is dividing the Chinese society’s social fabric.
China's Society Divide And Rising Black Money
A recent Credit Suisse-sponsored study by a top economic think-tank has revealed that China's richest citizens may hold as much as 9.3 trillion yuan ($1.4 trillion) of hidden assets. The report has confirmed fears that nearly two thirds of all the unreported income goes into the pockets of the richest 10 %, widening China's wealth gap alarmingly.
Another very important element of the Chinese growth story is the government-sponsored abuse of the country’s human resource, the largest in…
A thoroughly enjoyable and informative read, many thanks for taking the time to post.
Despite having lived in China for eight years myself, the vast array of corporations,and the very speculative nature of the Shanghai / Hang Seng stockmarkets have always made me wary of getting too involved in direct investments, despite the obvious long term rewards if one chooses successfully. There simply isn't enough time to track it. One only has to review the meteroric rise and fall of the likes of China Shoto, or the rocketing West China Cement(WCC) or more recently, China Wonder(CWO) to see that these Asian markets are particularly prone to volatility. But it certainly is an economic power house that can't be ignored.
Whilst I do try to follow several Chinese stocks in particular, namely CWO, CHNS, WCC (until it delisted and moved to Honkers) Geong, Petrochina and Cnooc, I tend to concentrate more so on letting others monitor and trade the markets for me through holdings in Fidelity Chinese Special Situations and JPM Chinese. Far easier to subcontract most of the work in a market I am unable to follow 24/7 leaving me to focus on the UK and less so, the US.
But I am always interested in people's specific stock thoughts on the Asian front.
