China might be described as a Chicken Little play for stock investors. Whenever fears of sovereign debt defaults are rising — the market equivalent of the sky falling in — investors flock to sell stocks.
The correlation has been so strong since mid-2015 that the spreads on credit default swaps for Chinese sovereign bonds — which measure risks of default — have been a near infallible pointer for share prices on the Hong Kong stock market.
But these days the perceived risks of collapsing skies are in retreat, giving investors licence to buy into China’s grand economic transition.
您已閱讀24%（582字），剩餘76%（1821字）包含更多重要資訊，訂閱以繼續探索完整內容，並享受更多專屬服務。