Chinese Economic Update – 12 May 2015

Chinese policy makers cut rates for the third time in six months, further cuts likely in the months ahead

Once again Chinese policy makers took centre stage over the weekend when they announced the third rate cut in just six months. The PBOC cited “relatively large downward pressures” facing the economy as the core reason for slashing its benchmark 1 yr deposit rate to 2.25% and […]

Chinese Economic Update – 06 April 2015

China lowers growth target, Premier states that policy makers “should focus on more than just the growth rate”

Chinese equity markets have continued to perform strongly throughout recent weeks as key decision makers in the politburo provided yet further signals that monetary policy could still ease further during the months ahead.

This was as the Chinese Premier Li Keqiang spoke at the annual […]

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Chinese Economic Update – 02 March 2015

Chinese policy makers cut rates again to fend off disinflation and deflation

On Saturday night Chinese policy makers took the world by surprise for the second time in just a few short months when they announced a 25 basis point reduction to both the lending and deposit rates, which now stand at 5.35% and 2.5% respectively.

The move by the […]

Chinese Economic Update – 08 February 2015

Chinese stocks appear to top out as regulator hints at tightening margin trading rules; PBOC cuts reserve requirements

Chinese stocks turned southwards again at the close of January as the nation’s securities regulator announced a review of rules surrounding margin trading. While there are potentially a number of reasons for this, not least of all 2014’s stock market gains, the Securities Regulatory Commission has cautioned against “over-interpreting” the move.

Nevertheless, the announcement had enough of an impact upon investors that markets almost completely shrugged […]

International Horizons –  China in 2015

A slowing economy, falling inflation and concerns over policy maker’s ability to meet their growth target forced the Chinese central bank into action for the first time in 2 ½ years in November 2014.

The bank cut both the deposit rate and the lending rate by 25 bp and 40 bp respectively, delivering a boost to Chinese equity markets and commodity prices.

The central bank action of 2014 preceded January’s Q4 GDP figures, which indicated that the pace of the slowdown in China […]