A worker makes carpets for export at a factory in Binzhou, in China’s eastern Shandong province, on October 20. A steep deceleration in Chinese growth would be a shock to a world accustomed to annual rates in excess of 7 per cent for most of the past 20 years. Photo: AFP
Opinion
Opinion
Macroscope
Why China’s economic downturn warrants more than a shrug from global investors
- Investors may claim they are increasingly concerned about China, but important measures of sentiment suggest otherwise
- The failure to reckon with a much sharper than expected slowdown in China is a grave mispricing of risk at a time when global growth is slowing sharply and central banks are preparing to tighten monetary policy
A worker makes carpets for export at a factory in Binzhou, in China’s eastern Shandong province, on October 20. A steep deceleration in Chinese growth would be a shock to a world accustomed to annual rates in excess of 7 per cent for most of the past 20 years. Photo: AFP