Six years ago, the markets could not get enough China. The iShares China Large Cap Fund (NYSE: FXI) quadrupled in just three years, and shares of PetroChina (NYSE: PTR) had surged 1,175% in the seven years before October 2007. Though most of the hard-landing crowd has been discounted, sentiment has clearly turned against the world’s second-largest economy. Shares of the largest China fund are down 12% over… Read More
Six years ago, the markets could not get enough China. The iShares China Large Cap Fund (NYSE: FXI) quadrupled in just three years, and shares of PetroChina (NYSE: PTR) had surged 1,175% in the seven years before October 2007. Though most of the hard-landing crowd has been discounted, sentiment has clearly turned against the world’s second-largest economy. Shares of the largest China fund are down 12% over the past four years and have underperformed the S&P 500 index by 77% over that period. But those focusing on the short-term economic weakness, a result of overcapacity and the government’s attempt to reposition economic drivers, are missing a very important figure that will drive real long-term growth. $8.1 trillion. That is the amount of investment needed over the next six years to meet urbanization needs in the country and to support more than 300… Read More