China growth and reform

Growth in China has, alongside the implosion of the eurozone, been the talk of global financial markets in recent weeks. Some scoff at the idea that forecasts of 7% GDP growth can be considered a cause for concern but markets have undoubtedly been skittish as a result.

Deutsche Bank’s Henry Cai points to a non-standard means of gauging the seriousness of growth concerns. He says new entrants to the Forbes rich list in China have been commonplace but more recently there has been less turnover, which suggests at least signs of a slowdown. “I think it is reasonable to accept the growth slowdown but it does present a challenge for the Chinese government and new leadership. However I am still cautiously optimistic about China.”