The Chinese stock market has had a volatile year, initially rallying before slumping as concerns about a hard landing culminated in speculation on the end of the Chinese economic growth model. If history shows us anything it's that people will always overreact; on the down side and the upside. But is it an overreaction to still be bearish on China?
In order to answer this question, we need to review a number of key economic and market themes. The bottom line is that there is a compelling outlook, but it's not as simple as it may seem.