By Prieur du Plessis Since a high of 3,056 in mid-April, the Shanghai Composite Index has shed 10.3% to close at 2,741 this morning. I have shied away from Chinese equities, but this hammering prompted me to reconsider the situation. Sources: I-Net Bridge; Plexus Asset Management.
I have pointed out before that the Chinese market players are excellent anticipators of the state of the underlying economy, especially since the latter half of 2009 when the Shanghai Composite Index started to lead China’s CFLP manufacturing PMI by approximately one month. From the graph below it is…
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