Tightrope balancing effort

Liquidity squeeze, tabs on speculative property buys and the European debt crisis have made Chinese investors risk averse

Having implemented the most effective stimulus program during last year's global economic downturn, the Chinese government in recent months has been engaged in a balancing act of controlling inflation and deflating asset bubbles without dampening growth excessively.

The current climate of domestic policy shifts and perceived external vulnerabilities has given investors ample cause for concern. Developments in China's economy have never drawn more global attention, as evidenced by unprecedented numbers of delegates expected at JP Morgan's annual China Conference.