Ankit Shah – Vivek Kaul’s Inner Circle (India) –
As an investor, you simply cannot ignore China…for many reasons.
While the US is the largest economy in the world in nominal GDP terms, in terms of purchasing power parity, the Chinese dragon has surpassed the US to become the largest economic power in the world.
About 18.5% of the world’s population lives in China. China is India’s largest trading partner.
Love it or hate it, we simply cannot do without China.
If you have any doubts, you must read this insightful note – A Small Thought Experiment on Made in Chinaby my colleague and big-picture expert Vivek Kaul.
Today’s Inner Circle issue is all about China. If you recall, 2016 started with a 27% stock market plunge in China. How is the dragon economy doing now?
Is it still on the verge of an impending catastrophe?We connected with our global intelligence council…and interestingly, our team of experts from Hong Kong, Singapore, and London have a contrarian view of China.
Without undermining the longer term risks and challenges, our experts see positive signs emerging in the Chinese economy.
Here’s Dr Justin Pyvis from Asianomics Group, Hong Kong…China is unique in the sense that it has far more resources at its disposal with which to manage its way out of what was a very significant malinvestment cycle following the global financial crisis.
If you don’t trust the numbers coming in from China, it’s certainly a valid concern. And Dr Jim Walkers addresses exactly that. Even after ‘cleaning’ the numbers, Dr Jim is confident that China is not heading towards an economic catastrophe.
Thereafter, Rupert Foster from Moneyweek, London takes us through China’s politics as no discussion on China is complete without its politics, which exerts tremendous control over the economy.