Fisher: Look Around You, the World’s Rally Will Lift Chinese Stocks

What now? With China’s markets mired in a seemingly endless rut after the October-to-January rally petered out, pessimism is running wild. Western pundits claim the fading reopening bounce, slowing economic data and even falling factory-gate prices to argue that a deflationary contraction looms — driving the next leg lower for Chinese stocks as unique pressures cause your markets to dive. What they miss: An economy and market as large as China’s can’t really diverge from the world for long. Look abroad and you see modest growth and a bull market that should help Chinese stocks soon. Let us take a quick world economic and market tour — and show you statistically why this should help China’s stocks.