India (IFN) and China (CHN)

A year and a half ago we posted this blog;

india and China feb 2011

The question then was how can stock markets keep going up if China, the second largest economy is going down, with Japan , the third largest, still down about 75%. Here are the updated charts;

ifn sep 2012chn sep 2012

Clearly both indices are fallowing the anticipated path quite well, having dropped another , give or take , 20 percent over the last year and a half. For those that prefer the pure Shanghai composite index things are actually worse;

Shanghai Composite Index,

Not unlike the Nikkei, this one is down about 67% and moving lower. Clearly of the 16 years on display here the “anomaly” to use a mining phrase, occurred in 2007 with the index climbing more than sixfold. To hope that China is the one country that will pull us out of our present low-growth era is a leap of faith at best.