China Report! - Answering 2008's Biggest Mystery
The attached article represents my latest effort to keep close tabs on real economic conditions in China as well as available information will allow. Today saw a very abrupt reversal of mood towards the sectors most closely affected by the viability of China's economic growth. Commodities, in particular, were abslutely hammered after a nice rally last week. While I suspect some indiscriminate selling and forced liquidation may have contributed to today's horrible tape, there were certainly some negative developments emerging from China over the weekend. First, Chinese President Hu Jintao warned of growing obstacles to sustained growth, and then November manufacturing data were anything but confidence-inspiring.
In the face of this all these concerns, Fools still have a fascinating resource at their disposal which places recent economic data into a larger context and suggests that China may not be in such a terrible position after all. For Fools looking to dig deeper into China's economic outlook than a single comment from the President or a single datum will permit, I highly recommend a look at the World Bank's latest quarterly report on China's economy. Enjoy the report, and my article discussing its implications, and please keep the debate alive over how China's economy will fare.