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Works eat lunch inside a subway tunnel under construction in Wuhan, Hubei province. Beijing has fast-tracked approval of infrastructure investments to combat slowing growth.
Works eat lunch inside a subway tunnel under construction in Wuhan, Hubei province. Beijing has fast-tracked approval of infrastructure investments to combat slowing growth.
(DARLEY SHEN/REUTERS)

How SHIBOR points the way for Canadian resource stocks

My Wednesday column outlined the theory that Chinese credit conditions are among the most important indicators for Canadian resource investors. With this post, I’ll use data to bring the theory down to the level of tactical advice.

The first chart on the left compares China’s year-over-year money supply growth (M2, in this case) to the year-over-year returns for the domestic S&P/TSX Diversified Mining Index.