This is useful. From JPMorgan, the China market “narrative” for 2012: The market narrative moving into 2012 for China – the worst performing stock market in 2011 but policy is starting to become more accommodative – China wound up being the worst performing large stock market in 2011, falling ~22%. A variety of themes weighed on sentiment, including a cooling of economic growth, tight monetary policy, a liquidity crunch that prevented SMEs from obtaining credit, falling property prices, and fears of large amounts of hidden local government debt (many of these worries remain in place as enter 2012). Inflation has cooled meaningfully from the summer peak and during the final weeks of ’11 the PBOC delivered a surprise bank RRR cut (investors expect another such cut in the first days of ’11 although Chinese officials insist their overall policy bias will stay “prudent” in 2012). GDP is seen troughing and staying north of the key ~8% level. Keep in mind that China will undergo a once-in-a-decade leadership change at the end of 2012 when President Hu Jintao and Premier Wen Jiabao step down from power.