Hayden Briscoe, director of Asia Pacific Fixed Income at AB, says the rise in funding rates following a rate cut over the weekend could mean that China's policy transition mechanism is broken.» Read More
China’s latest inflation numbers suggest the economy is cooling faster than economists expected, but the drop in producer prices by a steeper-than-expected 2.1 percent in June could provide a boost for corporate margins according to experts.
Fluctuations in global currencies are not only having an impact on corporate earnings but on dividend growth as well. Asset management firms across the world are in the process of rebalancing their exposure to global markets.
The rate cuts from three major economies on Thursday may have dominated headlines, but it did little to inspire confidence in global stock markets, which fell as investors took the move to mean the world economy remains in trouble.
China’s unexpected cut in interest rates – the second in less than a month – suggests that the world’s second-biggest economy is in worse shape than it appears and the government is getting worried about growth prospects ahead of the release of key economic data next week.
Speculation over whether China’s central bank will cut the reserve requirement ratio (RRR) for lenders as early as this weekend heightened on Thursday after local media reports urged the People’s Bank of China (PBoC) to act to boost liquidity and spur economic growth.
As the Chinese economy continues to sputter, prominent executives in China and Western economists say there is evidence that local officials are falsifying economic statistics to disguise the true depth of the troubles. The New York Times reports.
Asian markets fell on Thursday amid growing worries about global growth after China’s factory sector contracted for an eighth straight month, with economists telling CNBC it’s time for Asian policymakers to do more to boost growth.
China's inflation fell further in May, giving Beijing more room to fight a deepening economic slump following this week's interest rate cut.
Many experts from inside and outside the Chinese government are warning of the dangers involved in a fresh round of stimulus and easy credit that could reinflate a property bubble and exacerbate the stark structural imbalances already present in its economy. The FT reports.
Despite market speculation that China’s central bank may cut interest rates soon, strategists in the region tell CNBC that such a move is unlikely as recent economic data do not point to a huge slowdown to warrant aggressive monetary easing.
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.