Turns out the Chinese stock market is good for one thing

Tuesday, 26 June 2018

The Shanghai bourse leaves me cold. It’s hugely over-valued, even more hugely manipulated and fantastically minor in the roll it plays in allocating Chinese capital.

But it turns out that it is good for one thing: it leads Chinese macro slowdowns:

And it’s not a bad leading indicator for iron ore, either:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.