While China's reduction of the growth percentage to 7 is a negative for global growth, this is already factored in by the market. The Chinese authorities are aware that an overdose of stimulus could create bubbles and as such China seems ready for a lower trajectory growth rate.
There is capital investment of prior periods which have resulted in excess capacity. The real estate may also be looking South. So the market has to get used to a slower China.
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What should worry investors in equal measure is the non reliability or a lack of integrity among regulators. The Serious Fraud Office is reportedly investigating deals and information with the Bank of England. The regulators seemed to have looked away or abetted through indifference a series of misfeasance deeds. The Old Lady of Thread needle street seems to need fresh thinking and a reassurance of values,
There is capital investment of prior periods which have resulted in excess capacity. The real estate may also be looking South. So the market has to get used to a slower China.
*
What should worry investors in equal measure is the non reliability or a lack of integrity among regulators. The Serious Fraud Office is reportedly investigating deals and information with the Bank of England. The regulators seemed to have looked away or abetted through indifference a series of misfeasance deeds. The Old Lady of Thread needle street seems to need fresh thinking and a reassurance of values,
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