The Most Important Commodity Story That Nobody Talked About This Week

high speed rail taiwan

Photo: AP

A story that deserved to get more attention than it did this week was the news that China is planning on spending less on rail than it had spend last year.Specifically, it will spend about $115 billion, down around 9%.

There’s a few takeaways, but the big one is that the peak in Chinese infrastructure stimulus is in the past.

Granted, the country still has tons to build, no doubt, but there are limits to that.

When you see the slumping oil and copper markets this week, this story makes a lot of sense.

Beyond that, Chinese rail is gets a lot of hype, but also criticism for mal-investment. Is it possible Beijing is realising that too?

This story is one of GaveKal’s 5 reasons for the commodity selloff >

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