Markets remain concerned that any damage done by the almost 40% drop in the Chinese equity markets since midyear will spill over into the Chinese economy, which, in turn, could slow global economic growth. During earnings season for the second quarter of 2015 , several large U.S. multinational companies sounded cautious on China’s economy in the near term, most notably firms selling into China’s real estate and construction businesses. On balance, while generally acknowledging that overall economic growth in China may have hit a speed bump
in the second quarter, many of these same firms continue to be upbeat on China in the medium and long term and continue to cite the rise of the Chinese middle class as a key driver of their sales in China in the coming years. The latest data suggest that S&P 500 companies derive less than 5% of sales directly from China….

China Challenge