China has produced some spectacular long-term returns, but higher interest rates are beginning to put a dampener on the party. Nick Sudbury reports
The speed of China's recovery from the global downturn has far outpaced that of the West, with the economy expected to grow more than 9% in 2011. There are signs this may not be sustainable and even Premier Wen Jiabao has acknowledged that the country faces an uphill battle if it is to meet its growth targets over the next five years. China's main problem is that its recovery has largely been fuelled by a dramatic increase in bank lending, which has raised fears of a property bubble and rampant inflation. The National Bureau of Statistics revealed CPI hit 5.4% in March, which is well a...
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