JP Morgan Asset Management case study

What a slowing China means for investors

Published by : JP Morgan Asset Management

China is slowing, but will it be a hard or soft landing?

Evidence continues to mount that China's economy is slowing down, with first quarter GDP growth coming in at 8.1% (below consensus expectations of 8.4%). This has been attributed to weaker exports (due to weakness in the European economy and steadily rising domestic wages), and the relatively slow pace of monetary easing that began in the second half of last year.

For investors, who are perhaps already worried over stories of property bubbles in Tier 1 cities, debt ridden banks and political tension, the prospect of a hard landing for the Chinese economy exacerbates existing fears.

These concerns are misplaced. The themes mentioned above are typical of many countries as they develop, are usually over done and on reflection offer interesting entry points for the investor.

Published:01 April 2012

Business Area: Investment

Type: Portable Document Format (.pdf)


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