Inflationary pressures in China are closely related to events in the US economy and elsewhere; consider the following.
BEIJING -- China's inflation surged in August to the highest level in more than a decade as meat and vegetable prices skyrocketed, putting the central bank on track to raise interest rates again soon as government efforts to curb food prices fail.
Also keeping up the pressure on the People's Bank of China to tighten liquidity, China's trade surplus in August climbed to its second-highest ever. But growth in exports to the U.S. slowed, in what may be a sign that the meltdown of the subprime-mortgage market is having economic effects beyond America's borders.
Without some structure to your thinking about an issue like this one, you'll be lost in trying to make informed decisions or to consider the implications for your firm, career or investments. How about the following sentences - do they make sense to you? Are the implied relationships familiar?
It is "just a matter of time when the market will enter the [correction] period," said Xu Yinghui, an analyst at Guotai Junan Securities. "The government is using a variety of measures to rein in the economy and fast-rising markets, including accelerating the pace of new share issuance."
Government bonds also fell on the strong inflation data and a looming bond sale from the Finance Ministry.
Good stuff - expect to become much more familiar and comfortable with readings like this one. Don't worry if this seems mysterious. Soon you'll be at home with discussions like these.
China's Inflation, Trade Surplus Surge, Bolstering Need to Tighten Liquidity - WSJ.com
No comments:
Post a Comment