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Thread: Subprime Crisis Won't Hurt China

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[quote=FRANKENSTEIN,247420]In the wake of US Subprime Crisis, Deutsche Bank forecast that China can still maintain robust economic growth. The subprime credit crisis happen earlier had thwarted US economic growth.

"China's economic growth rate would be less than one percentage point lower if that of the US slowed down by one percentage point," said Ma Jun, chief economist for Greater China at Deutsche Bank AG in Kong Kong, said on Tuesday.

China's economy can still easily grow more than 10 percent if the US economic growth rate slowed to 0.7 percent in the second half of 2007, Ma noted.

China's economy expanded by 11.5 percent during the January-June period compared with the same period last year.

"The US economic downturn also has limited impact on the profitability of the listed firms on China's equity markets as a whole," Ma said, adding it can only seriously affect eight percent of the total stock market capitalization in the country.

However, the instable international credit market will have some side-effect on China's mortgage loans market. Yesterday, China Construction Bank, the country's biggest property lender, has warned commercial banks to guard against high default risks from individual mortgage loans.

The bank said in a recent report that it usually takes three to eight years for mortgage risks to be exposed, citing international lessons.

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