According to official statistics, China’s economy has grown at an average rate of about 7.5% in recent years. But PhD Copper says something has gone awry with the Middle Kingdom’s command style economic model. China is the world’s largest consumer of copper. If Copper prices are plummeting, the odds are China has something to do with it. The red flag that copper prices are sending on the Chinese economy is also being confirmed by the weakness in the Shanghai Composite Index. The performance of Chinese stock prices don’t seem to correlate with robust economic growth.
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Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.