Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Chinese economy ‘doomsday’ misguided

China’s slowdown should not be seen as a sign the world’s most populous nation is headed for economic instability, says global asset manager AB.

Advertisement
Advertisement
>Anthony Chan, Asian sovereign strategist at AB (formerly Alliance Bernstein), has issued a white paper watering down panicked responses to a Chinese growth slowdown from “some observers”, assuring global investors the Chinese economy has a solid outlook.

“Recent data suggest that the Chinese economy is now solidly entrenched in the new normal slower-growth era,” Mr Chan wrote. “Key growth engines such as industrial production and fixed-asset investment have slowed to decade-low paces, while retail sales and housing investment have decelerated to their lowest growth levels since the global financial crisis.”

However, while the outlook is perhaps less rosy than it has been over previous years, “panic will only set in if the job market starts to creak”, Mr Chan continued.

“So far, employment looks fairly stable, based on published official data and anecdotal evidence,” the white paper said.

“At least, no abrupt, mass layoffs like the ones seen in the aftermath of the 2008/2009 global financial crisis have been observed.”

The pivot to a services-based economy will be crucial for continued Chinese growth, it said.

Chinese economy ‘doomsday’ misguided
mortgagebusiness

Latest News

The prudential regulator has confirmed it is temporarily suspending the issuance of new licenses in response to the “economic uncertainty ...

The government has unveiled its previously announced commercial leasing code of conduct, which aims to protect tenants and landlords facing ...

The central bank has revealed that it has purchased over $36 billion in government bonds as part of its quantitative easing program to suppo...

FROM THE WEB
podcast

LATEST PODCAST: Managing the influx of COVID-19-related loans

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.