Beijing steers its economy towards sustainable growth
Chris Leung, senior economist for the Greater China region at DBS Bank Hong Kong, believes that despite fears of an economic slowdown in China, Beijing is making the right moves to enhance its economy in the long run. June 29, 2012 | Baron LaudermilkCommenting on analysts’ worries of a hard landing for the Chinese economy, Chris Leung, senior economist for the Greater China region at DBS Bank Hong Kong, told The Asian Banker in a recent interview that he expected Beijing to successfully weather the storm by implementing a long-term strategy based on incremental economic and financial reforms. Apart from analysing China’s economic data, Leung has also examined various factors, such as the state of Chinese society today, the Chinese Communist Party members’ psychology, and the motives behind their policies, noting that Beijing was willing to concede short-term fiscal losses if it benefitted its long-term strategy. Figure 1. China’s US investments by sector between 2005-2010 ($, million) Mark Thirlwell, programme director at the Lowy Institute for International Policy, opined that the economic slowdown was due to a drop in Chinese exports to the west whilst others have argued that China’s transition from an investment-driven economic model to a more consumption-driven framework was pulling its economy under water. However, Leung offered a different take on this issue, saying that Beijing had deliberately engineered an economic slowdown to help transform the country’s economy from an investment and infrastructure-dependent economy, to a knowledge and consumer -based economy. “Beijing slowed down its economy on purpose, and this was planned by the government itself. Market players hope that China will introduce measures to speed up growth by implementing another stimulus package, but they will not be doing so. No doubt the local government’s debt issues are still an area of concern, inflation is high, and prices of property have dropped, but the government isn’t worried about these issues as it intends to cool its rapidly developing economy.” Indeed, scholars and ec... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, China, Government Finance, Regulation, Risk and RegulationCapital & Strategic Issues,China,Government Finance,riskregulation,Risk and Regulation, Capital & Strategic Issues,China,Government Finance,Regulation,Risk and Regulation, , Capital Marketscapital, Capital Markets, Keywords:Chris Leung, DBS Bank, Liquidity Risk, Beijing, Risk Culture, Hong Kong, Dariusz Kowalczyk, Credit Agricole, Mark Thirlwell, Lowy Institute For International Policy Chris Leung, DBS Bank, Liquidity Risk, Beijing, Risk Culture, Hong Kong, Dariusz Kowalczyk, Credit Agricole, Mark Thirlwell, Lowy Institute for International Policy
|