China in transition from manufacturing to services
Uncertainty regarding China has been a factor behind global growth worries and share market volatility since mid last year. Put simply, the combination of a reversal of gains in Chinese shares, a fall in the Renminbi and uncertainty about the intentions of Chinese policy makers at a time of slowing Chinese growth, have fanned fears China was heading for a ‘hard landing’. However, while Chinese growth has slowed, the hard landing is yet to eventuate. This note looks at the main issues.