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China on Fire

By Benjamin Butler

 

Seoul, South Korea

 

When one is writing an international column, it is almost impossible to decide what to incorporate into it at times. There is a lot happening: this week European bond yields sank to new lows (Swiss ten year below 0%!) and the economic momentum seems to be improving a little, thus driving stocks to new highs there. The US data continues to soften, and bond market participants are betting that Fed rates will be significantly lower than the rates predicted by the Fed itself. Chinese markets seem to be on fire, possibly aided by the attention they are receiving over forward-thinking moves in financial architecture such as the Asian Infrastructure Investment Bank (AIIB). The reflation trend is intact, even if I am ever fearful of valuations, the misallocation of capital and ultimately a collapse of the current system.

 

Tomorrow I am flying back to Hong Kong for a round of ... Log in or subscribe to continue reading.


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