New Reply

Post a Reply

Thread: World Sneezes, China's Just Fine???

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=FRANKENSTEIN,276551]Bear in mind too that China continues to amass huge amounts of foreign exchange. In January alone reserves jumped $61.6 billion, bringing the country's cash hoard to $1.589 trillion. That's quite a pile available to the government should the need arise to prime the pump of an ailing economy. But that is highly unlikely, says JPMorgan (JPM) China economist Frank Gong. "Investment growth, loan growth, consumption growth, and China growth are strong," he says.

The Chinese proclivity to sock away huge amounts of savings provides a further cushion to a downturn. That means the disturbingly high degree of leverage that got U.S. hedge funds and households into the subprime mess is a problem quite unknown in China where the minimum mortgage down payment is 30%. "Residential mortgages are probably the best asset in the banking sector," says Ryan Tsang, senior director of banking research at Standard & Poors (MHP).

What are your comments to the above article? Do you think that China is immune to the global slowdown?[/quote]

characters left

Name:

Get a new code