Why we’ve reached peak pessimism on China

News Snapshot:

“When you see this (The Economist articles), I think we have reached peak pessimism in China and I think things will start to go right,” Khoon Goh, ANZ’s Singapore-based head of Asia research, says. “Going into the Golden Week holiday, we’re going to track spending to see if things are starting to pick up. That will be quite key.” He argues China’s stock of excess household savings is almost $US6 trillion ($9.4 trillion), around 30 per cent of GDP, which will enable a recovery. “So at some point, if confidence returns, and I’m sure it will return, these things move...