Daily FNArena News - International

According to US Global Investors there are a number of reasons why the recent strength of the Chinese economy is not indiative of a bubble forming.

China’s data releases today were just as spectacular as many had assumed, leading to 10% GDP growth forecasts and inflation concerns.

Chinese manufacturers are enjoying the best environment since April 2008, according to two monthly surveys.

Growth in China increased in the September quarter but China specialist Dragonomics remains skeptical.

A quarterly GDP growth of 8.9% is not enough to encourage any easing in stimulus measures, according to China’s Bureau of Statistics.

While many feel that developing Asia will continue to be insulated against the financial crisis, falling investment levels are now raising some doubts.

Asia is clearly leading the world out of the GFC and the rise of the Asian consumer is driving the recovery.

A widely accepted view of China is one of over-investment and under-consumption, but Morgan Stanley counters.

Not just China, but Asia as a whole has been an important driver of the global recovery to date. Can this trend continue?

An unconfirmed letter suggests Chinese state companies may simply renege on huge derivatives hedging losses.