PBoC Expands Liquidity to Shore up Growth

PBoC Expands Liquidity to Shore up Growth

Chinese authorities are figuring out that the rout in growth is a persistent force driving the rates of GDP growth lower so their reliance on fiscal stimulus wont be enough even as the financial imbalances accumulate. The first step was to tighten liquidity in order to create a more sound financial system, but now as… Read more

China Growth Beats Expectations pt.2

Monthly home sales value from May to June increased 33 percent as the provincial governments reduced the home buying restrictions, or even scraping them completely at some places. Falling prices have lured buyers, but the overall value sank. The first half is still down 9 percent. China doesn’t need just more credit, the economy needs… Read more

China Growth Beats Expectations pt.1

Economic growth in the world’s second largest economy accelerated on increased government spending and monetary policy action. After three quarters of slowing growth dynamics, government got the economy where it wants it — growing at the target rate of 7.5 percent. Recently Keqiang reafirmed the commitment for the growth target. Growth is heavily dependent on… Read more

Tech Drags Chinese Equities Lower

Chinese stocks fell slightly at the end of Asia trading session as the mixed performance of the various sectors brought a prevailing downwards trend against the few bulls. Electricity companies rose and tech stocks fell. Data showed the exports and imports rose, but exports trailed the forecast, sending the markets lower in the sensitive sectors…. Read more

PBoC Blurs Fiscal and Monetary Policy

Peoples Bank of China is starting another lending program aimed at boosting growth as the country tries to maintain a target rate of 7.5 percent real GDP growth. The Bank itself isn’t resembling its western counterparts as it doesn’t use the same instruments, targets nor it is independent from the government. The new lending programs… Read more

Goldman, Morgan Stanley Bet on the Second Half

BRIC countries’ equity markets were not the star performers in the first half of 2012 as global risks, China slowdown, Crimean war and other events threatened fragile, over-leveraged emerging markets. China was hit pretty hard as any report coming out of the country is carefully analyzed to determine the possibility of a hard landing scenario…. Read more

China PMI Surprises

Chinese economy is tethering on the edge. The threat of a financial crisis and hard landing started by a rapid fall in property sector prices would stop the rebalancing and probably cause a recession that would drag the global economy to the ground. In 2009 China was the power that helped offset much of the… Read more

PBoC Supports China Rebalancing

Bank of China is moving ahead to support the domestic economy. The goal is to sustain favorable nominal conditions for the rebalancing announced by the president Li to occur without endangering the financial system or the real economy.After enacting strictness by occasionally limiting liquidity supply to banks, which caused temporary surges in the overnight rate,… Read more

China Manufacturing Stagnating

Chinese manufacturing is still showing the sounds of weakening as the reform push in the world’s second biggest economy. Credit growth remains strong and economists are not in consensus when it comes to projection of further BoC stimulus. The PMI report by Markit and HSBC fell again to 48, from 48.5. Numbers below 50 signal… Read more

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