onsdag 8. mai 2019

China’s economy is showing signs of recovery but it’s not out of the woods yet

The latest March economic data has put a spring in the step of the world’s second-largest economy. China’s economic data for March exceeded market expectations and went beyond the effect of temporary seasonal factors, against a backdrop of solid gains in forward-looking indicators such as credit growth, house sales and factory orders.Given that the Chinese economy is already regaining growth and inflation momentum, it comes as no surprise that Chinese leaders are starting to be cautious about stimulus measures. 

On Monday, the central bank announced its smallest cut to reserve requirement ratios — which determines the proportion of cash that banks are legally required to hold — since embarking on its current policy of easing.