After a poor start to 2010, equity markets in China have weakened further with the launch in earnest of a government campaign against property speculation. The government’s decision to focus on bringing the property market into line arguably makes broader tightening – in the form of tighter loan controls or significantly higher interest rates – less likely. Any such moves are now likely to be delayed until the impact of the property measures can be assessed. Nonetheless, as long as the success or otherwise of the campaign is uncertain, market volatility looks set to stay.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services