Seeking Alpha

China's rebalancing efforts get an "F"

  • Q2 data "paints a depressing picture of the progress of economic rebalancing in China," says the Peterson Institute's Nicholas Borst, giving the country's efforts an "F."
  • Particularly notable on the downside is residential real estate investment now outpacing overall GDP growth by a whopping 12 percentage points. "Given persistent reports of excess housing stock, it seems unlikely that this level of spending is justified by actual demand."
  • On the positive side: Growth in the service sector (8.3%) began to outpace that of the industrial sector (7.6%) - a trend if continued would have services eventually occupying a more "normal" share of the overall economy.
  • China stock ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.
  • Sector ETFs: Real estate (TAO), Retail (CHIQ), Infrastructure (CHXX), Industrials (CHII), Financials (CHIX).
Comments (1)
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    two notable follow-up questions:

     

    how does this "F" compare to other countries efforts?

     

    what was Cn's grade in previous years?
    7 Aug 2013, 12:40 PM Reply Like
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