China’s sharemarket volatility – Dr Shane Oliver
For your interest I have attached an article below written by Dr Shane Oliver of AMP Capital in regard to the recent volatility in the Chinese sharemarket.
He has summarised the key points as:
– Just as the rise in Chinese shares had little economic
impact it’s hard to see the pullback having a significant
economic impact either.
– Chinese economic growth is likely to remain “around
7%” with monetary and fiscal easing helping.
– The volatility in Chinese shares represents a necessary
correction. Large cap shares are not expensive.
– The main dampener on commodity prices – and
Australia’s terms of trade – is not China but supply.