The China Factor

Everyone, who is anyone in the investment world, has been hankering after China for the past decade or so.  Jim Rogers (him of the Adventure Capitalist fame) is said to be actually getting his young daughter tutored in Mandarin because he feels that China is the world's new axis of power.  Chinese markets have been the focus of funds through equity capital for quite some time now, causing numerous bubbles from an overheating economy, forcing the government to take some cooling off measures before the bubbles threaten to burst.

Growth, at least economic growth, comes in an S-shaped pattern.  China has been on this supergrowth path for almost three decades.  But at some point, this 10% growth may become unsustainable and devolve to a consolidation phase.  There are many reasons for this, such as the effect on the working population caused by the one-child policy and so on.

Do read this article from the Wall Street Journal which analyses as to what we can look forward to in the years ahead from this vast resourceful country and the repercussions any slowdown in its growth can cause worldwide.