Thursday, April 14, 2016

The Big Risks: China & Currencies
Article highlights the drivers & measures relating to China's massive outflow of capital .. all kinds of capital controls are being imposed to keep the capital from leaving China .. "The reason concern over China’s currency is not going away comes down to the belief that the current policy path is simply unsustainable. Intervention to support the currency contracts the money supply at a time when credit is already growing at twice the pace of GDP and prices at the factory gate have been falling for 48 months. It might then come as little surprise that the two biggest risks identified by visiting money managers at Credit Suisse’s Asian Investment Conference last week in Hong Kong were China growth and currency risks."
LINK HERE to the article

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