Matthews Asia: China; Zero Interest Rates And More

Matthews Asia message to shareholders on China; zero interest rates and more.

Dear Valued Investors,

There is a popular notion at the moment that we are in an artificial world. Artificial in the sense that zero interest rates and incredibly easy monetary policies are creating immense distortions in financial markets, and that soon the day of reckoning will come when this fake edifice will come crashing down in a financial crisis. How this will happen is uncertain—an inflationary catastrophe? Or maybe rising interest rates? So pervasive is this idea that some people are arguing for an early rise in rates to get the inevitable pain over with sooner rather than later. I am not convinced that this view of...