Chinas core strengths to lift economy

币游国际登录平台

2021-06-05

TheboothofGainCapitalduringanexpoinShanghai.[Photo/ChinaDaily]ExpectedtaperingofUSmonetarystimulustoposeminormarketrisksTheexpectedtaperingofUSmonetarystimulusmovesmayhavesomespillovereffectsonChinaintheformofhigherfinancialmarketvolatilityandslowercapitalinflows,butstrongeconomicfundamentalswillhelpbuffersuchrisks,srobusteconomicrecovery,goodcontroloftheCOVID-19epidemic,andrelativelyamplepolicyroomwillhelpyuan-denominatedassetswithstandrisksarisingfromanywindingdownoftheUSFederalReservesquantitativeeasingprogram,theysaid."Thedomesticstock,foreignexchangeandbondmarketswillallbeexposedtorisksduetoapossibleQEtaperingintheUnitedStates,"saidWangYouxin,QEprogrammayrattleinvestorsentimentandheightenvolatilityinUSstocks,whichcouldreverberatetosomeextentinthedomesticmarket,,USbondyieldsandthegreenbackmayseearallyandimpairthecomparativeadvantageoftherenminbiandChinesebonds,leadingtoslowerforeigncapitalinflowsandfluctuationsintherenminbi,Wangsaid."YetChinassolideconomicgrowthsyearandcontinuetooutpacethegloballevel,providingastrongbufferagainstexternalshocks,"ominatedassets,Wangadded,citingthatChinasmacroleverageratiohasdecreasedfortwoquartersinaroww,Asia-PacificanalystwithCityIndex,aUnitedKingdom-basedtradingserviceproviderandpartofGainCapital,saidheexpectstherenminbitoremainsupportedbyinterestratedifferentialsandstrongeconomicfundamentals,refrainedfromhavinglargefiscaldeficits,thussupportingtheprospectsofboththeeconomyandtherenminbi,"anincrediblyfastrecovery"withitsGDPexpectedtogrowbynearly10percentthisyear,,arters,possiblybytheendofthisyearorearly2022,haveheatedusAprilmeetingsuggestedthepossibilityofbeginningtodiscussadjustingthepaceofassetpurchasesinupcomingmeetings,FedGovernorLaelBrainardsaidonTuesdayit,JPMorganschiefChinaeconomist,saidtheFedmeetingsareexpectedtostarttalkingaboutaQEsUSnonfarmpayrolldata,dueonFriday,whichwillgivemorecluestotheshapeoflabormarketrecoveryintheUSandhencethetimetableoftheFedsQEtapering,Sycamoresaid.。