Judging by the latest Merrill Lynch survey of fund managers, investors have a touching faith that China is going to rescue us all and re-ignite the commodity boom. How can this be? Taiwan’s exports to China fell 55pc in January, Japan’s fell 45pc. These exports are links in the supply chain for China’s industry. Manufacturing output in the Shanghai region fell 12pc in January. Source
China nears deflation trap as rail freight collapses
Railway freight in China’s Shanghai region plunged 31pc in January and industrial production fell 12pc, dashing hopes that Beijing’s stimulus policies will soon begin to fuel recovery.