China has a long way to go. The government has yet to bring Chinese refined product prices up to international levels. They are about 40 percent lower than the U.S.. |
There is a lot of pressure on Chinese manufacturers. |
There's no pricing capacity for anything. Food prices are falling; manufactured prices are seeing stagnation at best. |
These are both welcome measures in the A-share market. |
You have the foreign capital coming into China in the form of QFII. That's also positive for the A-share markets. |