People take in the view of the skyline of Shanghai’s Pudong financial district. China’s increasing integration into the global financial system should lead its asset market returns to become more correlated with global markets – something that is already happening. Photo: AFP
Patrik Schowitz
Opinion

Opinion

Macroscope by Patrik Schowitz

China is likely to avoid the middle-income trap. But investors should beware the pitfalls of focusing only on headline growth

  • Economic growth is important, but investor returns depend on more than that. In China’s case, the deepening and opening up of its financial markets are factors that will boost returns – and help it escape the middle-income trap

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People take in the view of the skyline of Shanghai’s Pudong financial district. China’s increasing integration into the global financial system should lead its asset market returns to become more correlated with global markets – something that is already happening. Photo: AFP
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New cars are lined up at a BYD factory in Xian, Shaanxi province. China’s economic output has slowed to the critical level of 6 per cent in the third quarter of the year. Photo: EPA-EFE
Hao Zhou
Opinion

Opinion

The View by Hao Zhou

With the US-China trade war likely to drag on, are Beijing’s economic growth targets still valid? Maybe not

  • Markets believe certain growth levels need to be maintained in China’s quest to become a ‘moderately prosperous society’ and, ultimately, a superpower
  • However, with the trade war and changing external circumstances, missing growth targets might become the new norm

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New cars are lined up at a BYD factory in Xian, Shaanxi province. China’s economic output has slowed to the critical level of 6 per cent in the third quarter of the year. Photo: EPA-EFE
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