Whether it's the year of the sheep, goat or ram, investors in the region should be wary of getting stomped all over

Will investors get sheared in the financial markets? That is the compelling question as the sheep ushers in the Chinese New Year, or Spring Festival, on Feb 19.

Eighth in the 12-animal cycle, the Year of the Sheep is also often referred to as the Year of the Goat and sometimes as the Ram. As it turns out, the Chinese character yang means all three.

This ruminant by any other name makes scant difference as the coming months are expected to pose some severe economic and financial challenges. With the Chinese economy slowing, continuing uncertainty over the strength of growth in the United States, and a debt crisis in Greece threatening to destabilize Europe, things appear decidedly woolly.

Throw into the mix the specter of a currency war after regional economies depreciated their currencies recently to steal a march on their trade rivals, and it looks increasingly like a baa ... d year ahead for investors. On Feb 9, China announced dismal January trade statistics, with imports slumping 19.9 percent and exports 3.3 percent from year-ago figures. Earlier it was reported that the country's manufacturing sector - a key growth driver - contracted in January for the first time in more than two years. This followed news that last year China experienced its weakest GDP growth in 24 years.

Chinese stocks are coming off their highs after having galloped away in the outgoing Year of the Horse, with the Shanghai index gaining 50 percent to become the world's best performer.

The good news for investors is that this year's wooden sheep - zodiac signs follow the five elements of metal, wood, water, fire, earth - is said to bring good fortune.

It is too early to tell. But one trend seems likely to continue: Fewer Chinese babies will be born in the coming year. Parents, it seems, aren't particularly enamored of the sheep's peaceful, gentle character, viewing them as meek and malleable.

But anyone who wants proof that sheep are far from sheepish needs to look no further than Chinese Premier Li Keqiang. Born in the wooden sheep year of 1955, the Chinese leader is tackling the headwinds of the Chinese economy head on.

In fact, the Year of the Sheep has more than its share of stars, including Oscar winners Robert de Niro and Nicole Kidman, Chinese superstars Chow Yun-fat, Zhang Ziyi and Chen Daoming. And sheep alumni don't come much bigger than the late Steve Jobs of Apple and Microsoft founder Bill Gates.

Regardless of the future, what really matters for hundreds of millions of Chinese in the coming days is to be home in time for that all-important family reunion dinner. This annual cross-country ritual is already known as the largest human migration in the world with over a billion trips made each year.

One popular Chinese idiom associated with the sheep (or the goat) is xi qi yang yang, which means to be jubilant or full of joy. On this festive occasion, therefore, may we wish all our readers xi qi yang yang, enjoy the season, and xin nian kuai le, Happy New Year.

kschan@chinadaily.com.cn

(China Daily European Weekly 02/20/2015 page14)