Over the last decade, China has been viewed as the world’s economic growth engine. And rightly so if you believe the country’s economic statistics. Nominal GDP has more than tripled over the last ten years. How have Chinese stock investors fared over this period? Not so well. Chinese shares have gone almost nowhere since year-end 2006 (12/31/2006 = 100 on chart). Growth ≠ Returns.
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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.