The China bulls are in full charge again. News that China's economy had accelerated ahead of expectations in the second quarter was greeted with rapture. Talk abounds that China will lead the world out of recession, that it will eclipse the US, and that its currency will replace the dollar as the world's reserve
Goldman Sachs has suggested that China's economy will be bigger than America's by 2027, and nearly twice as large by 2050. Tim Bond, head of asset allocation at investment bank Barclays Capital, believes that China "is going to be responsible for easily more than half global growth on her own".
"This is going to be the new centre of the world, not just the financial but the political world," investment guru Jim Rogers told the Asian Financial Forum in Hong Kong earlier this year. Economics professor Burton Malkiel has suggested that no investor can afford to ignore the China story – or omit it from their portfolio.
China's economic expansion has indeed been incredible, and so many amazing statistics relating to its growth are available in so many other places that it's pointless repeating them here.
What is worth noting, though, is that all these superlatives don't mean that China is an open-and-shut case for the investor.
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