China Economics Update Lending set to fuel investment-led rebound in short-term Today’s strong lending data cast last week’s rate cut in a new light. Policy is being eased further even though earlier stimulus measures had already started to take effect. That suggests the... 12th July 2012 · 1 min read
China Economics Update Property risks remain China’s frozen property market is showing signs of a thaw. Sales took off in the second half of June and prices are rising for the first time in months. Recovery in the sector would help haul the... 6th July 2012 · 1 min read
China Economics Update Second rate cut points to deepening growth concerns Today’s unexpected interest rate cut suggests that policymakers in China are increasingly rattled by the state of the economy. The move’s loosening impact will be amplified by the decision to increase... 6th July 2012 · 1 min read
China Economics Update Inflation Monitor (Jun.) Consumer price inflation tumbled to near 2% y/y in June, we believe. With the government pushing up electricity prices for heavy residential users starting this week, the headline rate may not get... 4th July 2012 · 1 min read
China Economics Update The view from the ground - Q2 2012 Business confidence has deteriorated again this quarter, loan demand has dried up, and most households are unusually concerned about their income prospects. However, sentiment towards the property... 19th June 2012 · 1 min read
China Economics Update Property outlook brightens China seems to have avoided the deep property slump that many were predicting. But neither property prices nor real estate investment are likely to experience a sharp rebound. 14th June 2012 · 1 min read
China Economics Update How long will the Hong Kong peg last? A provocative new paper by Joseph Yam, the former head of the Hong Kong Monetary Authority, calling for the territory to review its currency peg to the US dollar has once again raised questions over... 13th June 2012 · 1 min read
China Economics Update Banks respond to stimulus call as economy stabilises The May data brought evidence that conditions in China’s economy stopped deteriorating last month and may have moderately improved. With its banks now pumping out loans to willing state-owned... 11th June 2012 · 1 min read
China Economics Update Inflation Monitor (May) Consumer price inflation probably eased only slightly in May, but we expect larger falls to come in the next couple of months. This should reassure policymakers that they can continue to focus on... 8th June 2012 · 1 min read
China Economics Update Interest rate cuts underline determination to shore up growth Today’s benchmark interest rate cuts are a strong signal that policymakers are going all out to shore up China’s economy. Commercial banks are also being allowed to set both lending and deposit rates... 7th June 2012 · 1 min read
China Economics Update Who in Asia is most vulnerable to a hard landing in China? Recent weak data from China has led to renewed fears of a hard landing in Asia’s biggest economy. The countries most exposed would be those for which China is an important export market such as Hong... 6th June 2012 · 1 min read
China Economics Update Why are fiscal options being neglected? Despite a healthy budget position, the stimulus plans being unveiled in China are heavily-weighted towards investment. In this China Watch we ask why fiscal options are being neglected. We also look... 1st June 2012 · 1 min read
China Economics Update China's stimulus dilemma China’s policymakers have the ability to shore up economic growth in the short-term. But in doing so, they will increase the chances that the economy will experience a sharper slump two or three years... 24th May 2012 · 1 min read
China Economics Update Stimulus set to fuel recovery We believe that the stimulus efforts unveiled in the last few days will be sufficient to drive an economic recovery in the second half of 2012 but at the cost of further entrenching China’s economic... 23rd May 2012 · 1 min read
China Economics Update Required reserve ratio cut not enough to trigger rebound This weekend’s policy move by the People’s Bank is likely to be the precursor to a more explicitly pro-growth stance from China’s government. April’s awful data suggest that officials so far this year... 14th May 2012 · 1 min read
China Economics Update Hong Kong falters in Q1 Hong Kong’s economy had a weak start to the year, expanding in Q1 at the same tepid pace as in Q4 and confounding hopes that growth would accelerate. We think growth will probably pick up over the... 11th May 2012 · 1 min read