China held its once-every-five-year state meeting on the direction of its financial markets this week-end and the decisions the country’s leaders take are likely to have a large impact not only on their domestic market, but also the global economy so at Enable our experienced financial advisors will be looking at the financial news to keep track of events.
It has long been the case that many of us within the financial sector hope China will continues to liberalise its economy, but that it also takes measures to prevent a domestic economic slowdown that would damage any attempt to stabilise the Eurozone.
According to Yao Wei, a Hong Kong-based economist with the French Bank Societe Generale: “The progression of the reforms will determine whether China can avoid a hard landing in this decade.”
At the last Financial Work Conference, held in 2007, China’ Premier Wen Jiabao expanded the management and use of the country’s giant foreign exchange reserves, setting up the China Investment Corporation which has now one of the largest sovereign wealth funds.
For this years conference there are a number of factors we hope the Chinese politicians and regulators will consider. They lack a strong regulatory framework for local governments and have a shadow banking system, a euphemism for black market lending, that is spiraling out of control, and many businesses need to find alternative financing methods aside from bank credit. Enable reputable IFA’s of Bishop’s Stortford look forward to following events in the Chinese economy for their clients.
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