The Chinese economy stabilises and iron ore surges – where to now and what it means for investors and Australia - Aspire Planning Group

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The Chinese economy stabilises and iron ore surges – where to now and what it means for investors and Australia

Key points

– 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

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