5 reasons to worry about china's economy

Reasons to Worry5about China’sECONOMY

Since the financial crisis, China hasserved as the engine of the global economy.

While the United States & Europeremain mired in economic malaise…

…China’s miraculous ascent has continued.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

-4%-2%0%2%4%6%8%

10%12%14%16%

GDP Growth Rates: China vs. United States

China United States

Source: World Bank

But is this coming to an end?

That’s what it looks like…

1Real estate sales in China are headed lower.

2013 2014-10%0%

10%20%30%40%50%60%70%80%90% 77.60%

-3.70%

Year-over-Year Change in Real Estate Sales: 2013 vs. 2014

2Retail sales are growing at the slowest pace since feb. 2011.

Jan - Feb

2013

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb

2014

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

Year-over-Year Change in Retail Sales

3Industrial output is increasing at the weakest pace since 2009.

Jan - Feb 2013

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb 2014

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Year-over-Year Change in Industrial Output

4Fixed-income investments have eased to the lowest rate since 2002.

Jan - Feb 2013

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb 2014

17%

18%

19%

20%

21%

22%

Year-over-Year Change in Fixed-Income Investments

5Chinese stocks are nearing 5-year lows.

2009 2010 2011 2012 2013 20141,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

3,500

Shanghai Composite Index

Suffice it to say…

This doesn’t look promising.

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