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What is China up to now

Shane Oliver, Head of Investment Strategy and Chief Economist.

The attached note looks at the recent volatility in the Chinese share market.

Key points: 

  • Just as the rise in Chinese shares had little economic impact it's hard to see the pullback having a significant economic impact either.
  • Chinese economic growth is likely to remain "around 7%" with monetary and fiscal easing helping.
  • The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
  • The main dampener on commodity prices - and Australia's terms of trade - is not China, but supply

Posted by Christina Cabrera on Thursday, July 16, 2015

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