Greenwood Trading – The Chinese authorities’ efforts to stimulate the economy may have begun to bear fruit.
Greenwood Trading: Economic growth in China provided a sign that the government’s stimulus measures may be working by posting 2nd quarter expansion of 7.5% from a year ago against 7.4% in the previous quarter.
The improvement was accompanied by data which showed that retail sales and factory output had risen in June. The news served to allay fears that the world’s second biggest economy could suffer a so-called “hard landing”.
“The authorities were keen to avoid the kind of sledgehammer stimulus markets in the vein of the huge $586 billion package the country launched to stave off the deleterious effects of a post-Lehman Brothers crisis,” said a Greenwood Trading analyst. “Instead, they targeted specific parts of the economy and introduced tax breaks for companies as well as reducing the capital banks need to hold in reserve when lending to small businesses,” he added.
China’s economy has slowed as demand in its key export markets have slowed and the government has been trying to stimulate domestic consumption with moderate levels of success.
“Chinese tend to be savers rather than spendthrifts. The government’s efforts have met with reasonable success but there are signs that, aided by credit expansion, habits are slowly but surely beginning to change,” continued the Greenwood Trading analyst.
Despite the improved growth data, there is reason to suspect that the underlying impetus and remains weak and, by extension, so does the recovery. Greenwood Trading cautions that the country’s property market remains worryingly exposed to a correction that would have damaging financial repercussions for banks and lenders.
About Greenwood Trading:
Clients come to Greenwood Trading to avail themselves of our experience and our broad, comprehensive range of professional investment management services. More importantly, they remain with us because they can rely on us to provide them with the personalized service and the returns on investment their capital deserves.
Greenwood Trading’s philosophy revolves around collaborating with our clients. By leveraging our intimate knowledge of their situations and our investment expertise, we create a platform from which we can achieve their objectives in a time horizon and in a manner commensurate with their current and future needs.
Contact Greenwood Trading:
Tokyo Takarazuka Building, Floor 14,
1-1-3 Yurakucho, Tokyo, Tokyo-to, Japan
Phone: +81345888777
Fax: +81 3 6735 7085
Email: info@greenwoodtrading.co
http://www.greenwoodtrading.com