Julius Baer Research| Thanks to significant fiscal support measures, China was able to keep its annual growth rate stable at 6.7% and even accelerate its quarterly expansion rate from 1.2% to 1.8% in Q2 2016. China has several options to manage the expected slowdown ahead: fiscal spending, interest-rate cuts and renminbi devaluation will be able to limit the cyclical risks ahead.
Central Bank of China
The Corner | March 2, 2015 | The weekend decision of the Chinese Central Bank to cut benchmark lending and deposit rates by 0.25% is geared towards staving off deflation in the country´s slowing economy.
What is China’s credit real situation? Amid international markets’ woes, our experts put data into perspective. For Antonio Sánchez-Gijón, overall indebtedness of the Chinese economy begins to be seen as excessive and difficult to control. However, Ray Kwong believes liquidity shortages are normal in China, especially when banks are moving assets around to meet capital requirements before the end of a quarter, like around now.
For months now the Spanish and international press have been announcing an imminent salvage of the battered European economy by the Chinese. What seems to be true is that it is something that is never confirmed, just rumours, no actual, concrete action on the part of China. This is the idea that is floating around the City in London and among the Anglo-Saxon commentators, especially among those who most favour…