More on China. Robert Lloyd-George, arguably the most eminent Asia fund manager of his generation, visited 15 service sector companies in Shanghai and discovered nuggets down -30% in July with 50% of their market cap in cash. (Our own global stock screens show 41 of the world's 100 most attractive stocks are in China). Media prefer to sneer at the 60x PERs of the e-Commerce sector, which Lloyd-George says is booming. "One can see this in the Hong Kong shopping centres of empty shops with luxury brands... China seems more advanced than Western nations, with Alibaba's sales of over USD 550bn now dwarfing Amazon, or E Bay. Tencent and Baidu and their affiliates make up the core galaxy of competition, (nearly 600 mn Chinese have smart phones)".The Shanghai market turns over more than New York (USD 100 bn a day) with USD 5 trn in listed companies and Lloyd-George believes "this summer's sharp correction is an extraordinary opportunity to accumulate patiently long term positions, in some great businesses, at reasonable valuations... the ongoing correction in commodities led by oil, gold, and metals is a positive 'tax cut' for Asian consumers." We agree. 

David Fuller's view

Here is a link to Iain Little's Diary.

This is a minority view, so could Robert Lloyd-George and Iain Little be right?

I believe so but it will take a little more time to restore confidence among Chinese investors and also global investors.  Meanwhile, the government is supporting the market.  Call it QE Chinese style.