As shown in the chart below, there has been medium-term
correlation between Chinese stocks and the First Growths. Earlier in the year
we wondered whether this was beginning to weaken. In
recent weeks the two have completely diverged: macro economic concerns have
seen the Shanghai Composite Index plunge 15% since the start of June, while the
50 has held steady.
For the market to find its feet, it needs to rely less
heavily on China. But do the signs below suggest that Chinese demand is no
longer as important to fine wine, or that the market is simply lagging?