Why investors seek growth
theory a fast growing countries like China should produce good equity market
returns for investors. In practice, they do not seem to do this consistently. In
China, for example, whose stock market only opened in 1990, despite average
annual real growth in GDP per capita of 9.4% between 1993 and 2011 equity
market investors earned a mean negative return of minus 5.5%. Similarly, in
Russia over a slightly shorter period 1995-2011 mean equity returns were minus
2.2% despite positive real growth in GDP per capita of 3.6% per annum.