The miracle of China's disappearing dividend as economy grows
HONG KONG (REUTERS)- Shortly after China unveiled its new leadership last November, the country's main stock market delivered a downbeat verdict on the world's second-largest economy.
For a few days, the Shanghai Composite index dipped below the psychologically important 2,000 mark-where it was 12 years earlier.
The drop was puzzling to many. How could an economy that more than quadrupled in size in a decade, bringing prosperity to many of China's citizens in the process, have produced such poor returns for investors?
Resolving this paradox is central to explaining the country's extraordinary economic development- and to understanding whether it can continue.