China and the Crisis Narrative

5 minute read

For a little more than a decade, China has been at or near the center of investors' hopes and fears. The mix of its spectacular growth, scale, unorthodox policy and limited transparency has made it easy to believe a variety of well-told, fear-inducing narratives. Yet, while the crisis narratives persist in the mainstream, investors have found it counterproductive to position for anything more than just a modest negative adjustment in the Chinese economy and related assets. We do not think it is time for this to change and expect more of the same: high and steady, but then gradually slowing, growth rates.