Powered by MOMENTUM MEDIA
subscribe to our newsletter
Chinese economy ‘doomsday’ misguided

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 federal opposition has released its response to the final report of the banking royal commission, agreeing to 75 of the 76 recommendatio...

A class action suit has been filed against the major bank for allegedly approving home loans outside serviceability. ...

In its update on the implementation of Commissioner Hayne’s recommendations, the corporate regulator has hinted that it is investigating...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?