Davos Veterans Say Stop Worrying About China's Market Meltdown
- Delegates say there is a disconnect between economy and stocks
- China is slowing down, `but it’s not a cataclysmic slowdown'
A signpost indicating various key locations for the World Economic Forum stands in Davos, Switzerland, on Saturday, Jan. 16, 2016. World leaders, influential executives, bankers and policy makers attend the 46th annual meeting of the World Economic Forum in Davos from Jan. 20 - 23.
Photographer: Matthew Lloyd/BloombergA year ago, Premier Li Keqiang told the World Economic Forum that his country could avoid a hard landing. As the Swiss town of Davos prepares for the 2016 edition of the conclave, delegates such as Nobel laureate Joseph Stiglitz and Credit Suisse Group AG Chief Executive Officer Tidjane Thiam say he’s still right.
Their stance clashes with the recent sentiment in financial markets, where a sell-off of the yuan and Chinese equities sent shockwaves through commodities markets and helped wipe $5 trillion off stocks worldwide by reviving fears over the global growth outlook.