The pros and cons of investing in China

In a world where returns are hard to come by, China looks tempting. And the Middle Kingdom does have an awful lot going for it. But there is plenty to be wary of too.

In a world where it's hard to find attractive investments, China has suddenly appeared on my radar screen.

After an appalling 2008 which saw that nation's index of A shares fall 61% in dollar terms, the Chinese bourses have made a cracking start to 2009. This week the CBN 600 benchmark index was up nearly 24% for the year-to-date.

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