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For the past year or so, everybody on Wall Street has sung from the same hymn sheet on China. “Common prosperity” is a buying opportunity in Chinese stocks because it’ll lower the rates. In particular, goes the argument, this will benefit Chinese tech stocks given the duration play implicit in falling yields.
That’s about the beginning and end of the story right there.
How’s it going? So far, down -70%
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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.
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