Tuesday 9 September 2008

Is it time to buy China?

With China making new ytd lows and the Beijing Olympics having concluded, we examine the case to turn more positive.

Not yet, according to Goldman Sachs. At the macro level, growth and inflation are not yet low enough to warrant a shift to a stimulative policy bias. On the micro level, we anticipate further declines to consensus earnings forecasts. Neither issue is fully discounted by the market, in our view.

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