China Economics Update Capital Flows Monitor (Apr.) After a sharp decline at the start of the year, net capital outflows have crept up again recently. Unless we witness another misstep on exchange rate policy though, outflow pressure should remain... 23rd May 2017 · 1 min read
China Economics Update What would make policymakers change course? The weak activity and spending data published yesterday add to evidence that growth in China is starting to slow. We think the deceleration in the economy will be gradual and expect official efforts... 16th May 2017 · 1 min read
China Economics Update Paltry trade benefits from US-China deal The trade deal announced between the US and China today won’t make any meaningful difference to the bilateral trade imbalance, which could still trigger a flare-up of tensions between the two sides in... 12th May 2017 · 1 min read
China Economics Update Inflation set to rise, but outlook benign We think headline inflation will have risen in April and expect a further pick-up over the next few months. But price pressures should remain contained over the course of this year. Meanwhile, the... 8th May 2017 · 1 min read
China Economics Update Should global investors be worrying more about China? Growing evidence that China’s economy is slowing has triggered falls in domestic equity and global commodity markets this week but there has been no repeat of the broad global sell-off that... 5th May 2017 · 1 min read
China Economics Update Concerns over regulatory tightening spook investors China’s equity markets saw the biggest fall since 2016 in April after policymakers ramped up their rhetoric on limiting financial risks. Meanwhile, the renminbi has remained stable against the US... 28th April 2017 · 1 min read
China Economics Update Construction likely to slow again as property sales cool After falling for years, construction growth in China has stabilised since the start of 2016, supported by a rise in home sales. Dire warnings of developers collapsing have not materialised. But it is... 27th April 2017 · 1 min read
China Economics Update Renminbi may be approaching a turning point Analysts are convinced that the renminbi can only go one way – down against the dollar. But a return to appreciation is looking increasingly plausible. 26th April 2017 · 1 min read
China Economics Update Capital Flows Monitor (Mar.) According to our latest detailed estimates, China’s net capital outflows have been close to zero during the past two months. This is a major shift from late last year when monthly outflows exceeded... 21st April 2017 · 1 min read
China Economics Update Investment not as strong as meets the eye Nominal investment growth accelerated in Q1, leading to increased optimism over this year’s economic outlook. But adjusting the data for the jump in fixed asset price inflation suggests that... 18th April 2017 · 1 min read
China Economics Update New (non-consensus) growth forecasts for Hong Kong Hong Kong’s economy has rebounded over the past year and is likely to stay strong in the near-term, supported by rapid export growth, and we have raised our forecast for 2017. But we expect a fresh... 12th April 2017 · 1 min read
China Economics Update North Korea to distract from trade at Trump-Xi Summit We expect Donald Trump to tone down his criticism of China’s mercantilist policies when he meets Xi Jinping later today in order to focus on dealing with the more pressing threat from North Korea. If... 6th April 2017 · 1 min read
China Economics Update Inflation rebounds as New Year distortions fade Consumer price inflation ought to have rebounded from a seasonal decline in February last month but remained low. Looking ahead, households will continue to face relatively subdued price pressures in... 5th April 2017 · 1 min read
China Economics Update New economic zone won’t match Shenzhen, Pudong China’s government recently launched a new economic zone near Beijing that it is billing as the most important project of its kind since the Shenzhen Special Economic Zone and Shanghai’s Pudong New... 4th April 2017 · 1 min read
China Economics Update Repo rise signals growing concern over credit risks China’s interbank repo rates have fallen back slightly after the headline-grabbing spike last week that took them to their highest in more than two years. But the bigger picture is that the PBOC has... 31st March 2017 · 1 min read
China Economics Update Leader of the free (trade) world? President Xi Jinping is heading to the US next week presenting himself – in contrast to President Trump – as a champion of free trade. Foreign firms operating in China tell a different story. In this... 30th March 2017 · 1 min read