China Economics Update Virus disruption starting to weigh on employment The vast majority of firms in China have enough funds to keep paying their creditors and employees for at least a couple of months amid the disruptions caused by the coronavirus outbreak. But a... 19th February 2020 · 4 mins read
China Economics Update PBOC cuts rates again, with more easing to come The People’s Bank (PBOC) has taken yet another step to help banks and borrowers weather the economic disruption from the coronavirus outbreak. But more easing will probably be needed. 17th February 2020 · 2 mins read
China Economics Update What to make of the jump in COVID-19 cases A jump in reported cases and deaths appears to reflect the official figures getting a better grip on the true extent of past infections, rather than indicate a recent acceleration in the spread of the... 13th February 2020 · 2 mins read
China Economics Update Coronavirus disruptions set to drag on Efforts to contain the virus are becoming less draconian but with many factories struggling to re-open and households not spending, it will be a while before the drag on growth fades. 11th February 2020 · 3 mins read
China Economics Update Coronavirus: Gauging the policy response Policymakers have loosened both monetary and fiscal policy in an effort to soften the economic blow from the coronavirus. Further easing is likely in the coming weeks. But if the virus peaks soon then... 6th February 2020 · 3 mins read
China Economics Update Coronavirus: What to watch in the coming days Data due in the next week or so should give a better sense of how badly economic activity has been hit by the outbreak. And given the incubation period of the virus, the effectiveness of the... 4th February 2020 · 4 mins read
China Economics Update PBOC steps up rate cuts in response to Coronavirus The People’s Bank has lowered the rates it charges banks for short-run liquidity. Given the mounting toll of the Coronavirus outbreak, we expect more cuts in the coming months. 3rd February 2020 · 2 mins read
China Economics Update Virus outbreak increasingly resembling SARS Even if the coronavirus outbreak is brought under control quicker than SARS was in 2003, the economic impact now looks likely to be of at least a similar scale. We estimate that SARS lowered China’s... 27th January 2020 · 3 mins read
China Economics Update Assessing the impact of the new flu virus in Asia Fears are growing about the spread of a newly-identified coronavirus across Asia. In this Update we discuss the likely implications for the region’s economies. 21st January 2020 · 3 mins read
China Economics Update Loan Prime Rates on hold but cuts still on the horizon The Loan Prime Rate (LPR), the reference point against which banks now price loans, held steady in December. The one-year LPR was unchanged at 4.15% (both the Bloomberg consensus and our forecast were... 20th December 2019 · 2 mins read
China Economics Update The PBOC remains in easing mode The People’s Bank has made another small downward adjustment to the rates it charges banks for short-run liquidity. We expect further cuts in the coming months, which will open the door to lower... 18th December 2019 · 2 mins read
China Economics Update What to expect in 2020 Domestic headwinds will continue to weigh on growth next year, even as the external environment starts to improve. We expect this to trigger additional policy easing, with the PBOC likely to cut rates... 12th December 2019 · 4 mins read
China Economics Update PBOC cuts feed through to lower bank rates The latest Loan Prime Rate (LPR) reductions confirm that banks are lowering lending rates on new loans in response to the recent cuts to the PBOC’s lending facilities. And policymakers’ willingness to... 20th November 2019 · 3 mins read
China Economics Update PBOC nudges down its floor on interbank rates For the first time this easing cycle, the People’s Bank has cut the rate it charges banks for short-run liquidity. We expect further cuts in the coming months, which will open the door to lower... 18th November 2019 · 3 mins read
China Economics Update How much does Hong Kong’s special status matter? If Hong Kong’s special treatment under US law were revoked, the city would lose access to sensitive US technology and face an increased threat of US tariffs. The short-term economic damage would be... 11th November 2019 · 3 mins read