A better-than-expected Chinese Purchasing Managers’ Index number for March validates the view of most observers that China’s growth improved somewhat during the first quarter, in response to easier monetary policy, targeted lending, tax cuts and infrastructure spending.

While there was also modest uptick in manufacturing activity sentiment in the US, Germany saw a dismal reading.  Despite this, German industrials were among the world’s strongest-performing stocks, and I continue to believe that European firms with strong China exposure represent a cheap way of buying into Chinese growth.

Read more: Fear of being left out drives China rally

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