China Economics Update Renminbi close to high-water mark The renminbi has now reversed all of its losses against the dollar since the day of the botched exchange rate reform in August 2015. We remain upbeat about the currency’s medium-term prospects but... 31st January 2018 · 1 min read
China Economics Update Strong start to 2018 Although they have fallen in the last couple of days, Chinese equities are still up sharply this year so far. The renminbi has also appreciated against the US dollar, taking it back to where it was... 30th January 2018 · 1 min read
China Economics Update How would China fight a trade war? If the long-running skirmishes between the US and China were to escalate into a trade war, China would try to occupy the moral high ground by portraying itself as a defender of free trade. At the time... 30th January 2018 · 1 min read
China Economics Update Trump still pulling his punches on China trade The new US tariffs on imports of solar panels and washing machines may be aimed at China but look more like a continuation of the skirmishing of recent years than the first salvos of a trade war. 23rd January 2018 · 1 min read
China Economics Update Capital Flows Monitor (Dec.) Capital outflows from China rose slightly in December as Chinese households and firms added to their foreign asset holdings. Looking at the year as a whole, capital outflows fell by 80% in 2017. 22nd January 2018 · 1 min read
China Economics Update IT boom fails to avert broader slowdown The detailed breakdown of China’s Q4 GDP data released today claims that stronger services activity, particularly in IT, fully offset a slowdown in construction and industry. While we don’t doubt that... 19th January 2018 · 1 min read
China Economics Update Will strong global demand support China in 2018? Continued strength in foreign demand should help cushion some of the slowdown that we expect in China’s domestic economy this year. But it won’t prevent growth from weakening. 18th January 2018 · 1 min read
China Economics Update PBOC’s hands are tied over US Treasury holdings A Bloomberg report that Chinese officials are considering halting purchases of US government debt triggered a sell-off in the US Treasury market today. In fact, China has not been buying US debt for... 10th January 2018 · 1 min read
China Economics Update Inflation set to jump We expect consumer price inflation to surge over the coming months on the back of a spike in food price inflation. However, with core inflation probably close to a peak and producer price inflation... 5th January 2018 · 1 min read
China Economics Update The PBOC pretends to follow the Fed The People’s Bank has raised the rates it charges when providing funds in China’s interbank market. But unlike in the US, the move seems unlikely to result in higher short-term funding costs for most... 14th December 2017 · 1 min read
China Economics Update Inflation to jump in early 2018 We expect a spike in food price inflation to push headline CPI inflation up sharply over the months ahead. But with core inflation unlikely to pick up much further and PPI inflation set to fall... 7th December 2017 · 1 min read
China Economics Update US tax cuts bolster calls for China to follow suit As US tax reform nears the finishing line, some in China are warning that the cut to US corporate tax rates could undermine China’s competitiveness and spur capital outflows. We think these concerns... 6th December 2017 · 1 min read
China Economics Update What to expect in 2018 We’ve revised down our forecast for China’s growth next year on the back of the weakness in recent data. There will be little movement in the official GDP growth numbers but we now expect actual... 5th December 2017 · 1 min read
China Economics Update Crackdown on online lending spooks markets Chinese equities have fallen back from recent highs after regulators spooked investors by tightening restrictions on online lending. But we don’t think a slump is likely. Meanwhile, corporate bond... 30th November 2017 · 1 min read
China Economics Update GDP targets here to stay Official talk about prioritising the “quality” of economic growth over speed has sparked speculation that the government may stop setting GDP targets. Unfortunately we think they are here to stay. 22nd November 2017 · 3 mins read
China Economics Update Capital Flows Monitor (Oct.) After seeing net capital inflows in September for the first time in 2014, we think outflows will have returned last month as Chinese investors acquired foreign assets at a faster pace and inbound... 17th November 2017 · 1 min read