EFTA Document EFTA01451035

11 December 2013 GEM Equity Strategy Outlook 2014 Still bearish on China Positive sentiment overdone given risks of debt trap in corporate sector and local government Ongoing deterioration in China leaf ROTC undermines growth prospects As regular readers will be only too aware, our negative view on both the Chinese economy and equity market derives from a micro-level perspective of the structure and returns of the corporate sector. For the past three years. we have been using the CROCI