Big Trouble in Little China
A Chinese conundrum
It is true - for all you macro whiz kids out there with a PhD in China Inc, this report contains absolutely nothing new. And yes, it is true that very often equities lead the macro development so that the discrepancies that we are pointing out here are just lagging indicators. However, what is also true that we in our heart of hearts feel that China macro will not turn for the better for a long time as the country is facing massive challenges. Therefore, we do think this note is relevant as it once again rehashes the macro bear case - as equities have traded very strong. Enjoy.