I would recommend this site ‘Investing in China stocks’ for a good dose of reality check on China’s macro and other developments. Just the other day, I had posted a chart on declining FDI into China. That was from this site. The falling FDI (negative Y/Y change) is consistent with what I read elsewhere that major international brands were postponing expansion or even closing down their existing stores. They are not renewing their leases (Gucci, Swiss watchmakers, etc.).
This chart too is a tell-tale chart:
The concluding lines in that post are worth thinking through:
Japan, USA, Europe and China all took turns to be the engine of the world economy between 1980 and 2010 but now we are engineless until circa 2020/2025. By demographics that means a global deflationary recession, or a depression. Passing through the solar maximum here in 2014 should produce dwindling speculation and economic activity and nudge the stock markets and world economy over the edge, feeding off each other.
I would say ‘Amen’ to that.