What makes Chindia run?

According to Morgan Stanley's Andy Xie, participant in the "The Nature of Growth in China and India: Challenges Ahead and Implications for the Rest of the World," panel at the 2006 IMF/World Bank Annual Meeting in Singapore: The secret is fearless liquidity.

This [positive] sentiment bubble will likely burst along with the end of the growth cycle, in my view. The current global cycle is all about liquidity and risk appetite. I believe it will come down either with an inflation problem that forces central banks to withdraw liquidity or with a collapse of risk appetite due to an accident. Judging from the crowd size in our session, the bubble is quite alive.

Andy Xie, Morgan Stanley Global Economic Forum September 22, 2006.