Latest News:  
Beijing   Light to moderate rain/Light rain    13 / 8 ℃  City Forecast

English>>China Business

It is time to turn cautiously bullish on China's economy (2)

By Chris Leung  (Shanghai Daily)

13:34, November 07, 2012

No rate cuts

That explains why the market shall unlikely see more reserve requirement ratio and interest rate cuts. Interest rate outlook is thus at best neutral without any upward or downward bias at this juncture. It looks like the forthcoming rebound will come geographically from the middle/western parts of China as the export-oriented provinces will continue to suffer from the volatility of external trade. It is unclear whether the collective strength of the inner provinces can drive growth in a sustainable manner.

In my opinion, the answer is probably not. But it definitely buys the new leadership some time to come up with concrete reform initiatives that must be executable in practice.

In short, it is time to turn cautiously bullish on China.

Smart money will likely keep pouring into Hong Kong and the Chinese mainland. Both Hong Kong dollar and the Chinese yuan will continue to be well buttressed by capital inflow in the near term. Should economic fundamentals in the fourth quarter and thereafter subsequently confirm the earlier bets by such smart money, monetary authorities in Hong Kong and the mainland will have a hard time dealing with the inflow.

【1】 【2】


Recommended Features:
[Special]'Made in China' Revisited From 'Made in China' to 'Created in China' A Journey to Cultural Renaissance
Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR IPR in China: Local Roots Bearing Global Fruits
IPR in China: Causes for the Thriving Cause Caofeidian coal wharf put into use Canton Fair wraps up on Sunday


Email|Print|Comments(Editor:梁军、马茜)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. China's stealth fighter concept model

  2. PLA Macao Garrison finishes 13th rotation

  3. Unforgettable moments in Nov. (III)

  4. Flight test of unmanned aircrafts conducted

  5. First inter-blood-type liver transplant in China

  6. Harbin Autumn Automobile Exhibition

  7. Embroider best wishes on insoles in Shanxi

  8. China's rich people will reach to 280 million

Most Popular

Opinions

  1. Commentary: Hot money needs cooling
  2. Smart solutions for better city, better life
  3. China remains an 'engine' in global economy
  4. M&A of listed companies gaining steam
  5. Is 'culture' inferior to 'commercialization'?
  6. Chinese liquor makers "sober up" over bans
  7. Strength of Chinese culture lies in understanding
  8. Securing China's e-commerce growth
  9. Hammered ore prices threaten Chinese iron miners
  10. CNN Beijing chief: China's challenges, opportunities

What’s happening in China

Landmark building should respect the public's feeling

  1. Herders, sheep flock move to winter pasture
  2. First inter-blood-type liver transplant in China
  3. HIV patient to sue hospital over cancer op refusal
  4. Test in intelligent vehicle for food detection
  5. Smart card, dumb refund rules