Chinese domestic buying of equities is a good sign for the economy ...Middle East

What wasn't clear was who was doing the buying -- domestic or foreign investors -- and how much conviction they have. In October, we got a taste of this dynamic as the rest of the world briefly fell in love with Chinese stock markets only to see most of the rally dashed.

Even with the late selling, the index finished well off the lows and I take that as a good sign. More importantly, I take the buying-the-dip in Asian trading as a sign that domestic investors are wading in.

It's early and much hinges on the National People's Congress starting March 5 but I take today's price action as a good sign -- not just for China but for global growth trades.

This article was written by Adam Button at www.forexlive.com.

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