– Chinese economic growth stabilised in 2016. Expect Chinese growth this year of 6.5% and inflation of 3%.
– Key risks regarding China relate to policy tightening, the property cycle, rapid debt growth and a trade war with the US. All of these should be manageable.
– Chinese shares remain reasonably good value from a long term perspective, but beware their volatility.
– The stabilisation in Chinese growth and improvement in commodity prices is positive for the Australian economy and Australian assets. Introduction A year ago there was a long global worry list and high on that list was China. A nearly 50% collapse in Chinese shares, uncertainty about the