David Fuller's view China's IPOs, release of non-tradable shares, bank reserve requirements hikes and other inflation-fighting measures have kept the A-Share stock market (p&f, monthly, weekly & daily) on a leash since August 2009. I maintain that this is a lengthy base formation extension but a push above this month's high will be required to signal that demand is regaining the upper hand. The PER for the Index is historically low, indicating medium to longer-term upside potential for what remains the world's fastest growing economy.

Niche funds in China's healthcare and consumer sectors are outperforming, as you can see from the US$-denominated Atlantis China Healthcare Fund. This is currently the third largest position in my personal top-10 long-term investment portfolio.