If China's leaders set a growth target of 7 percent at the upcoming National People¿s Congress, expect a lot more easing, says Sam Le Cornu, senior portfolio manager, Asia Listed Equities at Macquarie Funds Group.» Read More
With global markets continuing their tumble and bond yields dropping in tandem, calls are getting louder for a coordinated central bank action to stem panic in markets.
Stimulus measures by Beijing will provide just a temporary fix for China’s slowing economy and could derail the country’s long-term economic rebalancing plans, say experts.
The massive commodities boom of the past decade is at its tail end given the slowdown in one of the largest consumers, China, says Ruchir Sharma, Head of Emerging Markets at Morgan Stanley Investment Management.
Continued weakness in China’s economic data, as well as growing risks of a Greek exit from the euro zone, will drive Beijing to launch aggressive stimulus measures in order to prevent a further deterioration of growth in the world’s second largest economy, economists and strategists told CNBC.
The situation in the euro zone has become so bleak that it is giving rise to rumors the euro will be tied to the dollar at close to parity, a dramatic fall, which would have severe implications for the US and China. The Financial Times reports.
As China’s leaders have been preoccupied with a political struggle leading up to a once-in-a-decade leadership change this autumn, there are increasing signs that the Chinese economy may be running into trouble. The NYT reports.
The overwhelming majority opinion is that a communist government can accomplish what no other country has ever done, namely engineer a soft landing from the bursting of an immense, speculative, credit bubble. I have a different view.
China has loosened bank lending in response to its ongoing slowdown. But the old trick of turning up the monetary spigot merely delays the needed structural reforms and leaves a bigger inflation legacy. Instead, the country needs to lower taxes and improve competitiveness, says Andy Xie.
The one step closer I refer to is the announcement from the People’s Bank of China this weekend that it was widening the trading range in which the yuan could fluctuate against the US dollar, from 0.5 percent to 1 percent.
Chinese students are increasingly heading to western universities for both undergraduate and postgraduate education.
China’s economy is changing. Indeed, it has to change, as I argued two weeks ago (“How to blow away China’s gathering storm clouds”, 20 March 2012). The good news is the scale of the external rebalancing. The bad news is that this is at the cost of larger internal imbalances.
A contraction in Chinese manufacturing has sparked fears of a hard landing in that country and an overall global slowdown. But that actually could prove a positive for U.S. economic growth.
The next four decades will be full of the unexpected, since we live in an era of particularly rapid change. But Megachange is something to be embraced, not feared. Here's why.
Despite China’s inflation rate hitting a 20-month low in February sparking talk of further monetary easing, some analysts don’t expect Beijing to aggressively boost growth as rising prices are still a threat.
China will unveil a host of new policies aimed at boosting growth in the next few weeks as the country tries to stimulate investment, according to James Kynge, author of the international bestseller "China Shakes the World".
After spending most of 2011 in negative territory, Chinese stocks have the biggest upside potential, according to Cedric Ma, Senior Investment Strategist at Convoy Asset Management.
The next big global financial crisis will emanate from China. That is not a firm prediction. But few countries have avoided crises after financial liberalization and global integration. Would China be different? Only if Chinese policymakers retain their caution, says the FT's Martin Wolf.
The politics of China's need for a smooth leadership succession this year provide the best protection against a hard economic landing, regardless of stuttering exports, faltering capital flows, local government debts and lingering inflation risks.
China should accelerate the loosening of capital controls, its central bank said, in a report outlining the path to a freely tradable currency and more open capital markets. The Financial Times reports.
The Chinese central bank's move to boost economic growth by cutting the reserve requirement ratio (RRR) by 50 basis points over the weekend, for the second time in almost three months, is part of its "fine-tuning" of monetary policy, say analysts who expect more such easing in 2012.