Is Red China too hot to handle?

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The biggest debate surrounding emerging markets undoubtedly centres on China, the world's fastest growing stock market.

Opinion appears divided; is its strong rate of growth set to continue or is a meltdown on the horizon? China’s GDP currently stands at about $10trn, behind only the EU and the US at roughly $13trn each. The political situation is also supportive with the Chinese government understandably keen to continue the stunning rise, while moving to ensure the economy remains as stable as possible. Morningstar’s equities strategist Paul Larson recently returned from a trip to the Far East and returned with a mixed view of prospects for the Asian giant. “Visiting China in 2007 is a bit like vi...

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