“A relative bright spot in an otherwise gloomy global economy,” said the World Bank’s country director for China, David Dollar, of the country’s economic performance in 2008, which saw growth rates remain comparatively strong at 9%. While exports have slumped, the domestic market is expected to pick up some of this slack, leading economists to forecast growth rates of 6.5% for 2009.

“Around the world government expenditure is the only game in town,” said Gary Baker, co-head of international investment strategy at Banc of America Securities-Merrill Lynch. “There is a view that China will hit their 8% growth target; they have more experience in a planned market economy situation, have been clear about the stimulus and there are clear signs the package is getting through”

Compared to the deteriorating prospects elsewhere, this is music to the ears of private equity investors...

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