China: Light in the shadow banking sector?

Active fund management is a constant search for value. Smart investors know the market is full of risks, and there are both bull and bear arguments to made on virtually every stock. The only difference between the good and bad investments is the price you pay to own them. Accurate assessments of ‘fair value' are therefore central to generating long-term returns. There will be many occasions when certain risks seem obvious, but the current share price already discounts them. At such times one can simultaneously acknowledge the existence of risks, and yet see potential for value in a st...