China’s Third Plenary Session earlier this month delivered reforms that have recently been elaborated upon.
Historically, China’s Third Plenum, an annual meeting of the ruling Communist Party, has often ushered in radical reform. By contrast, the meeting’s conclusion yesterday brought only a vague statement.
China’s third quarter GDP growth rebounded to 7.8% year-on-year, having decelerated to 7.5% year-on-year in the last quarter.
Recent scaremongering by market commentators on the state of the Hong Kong property market is just that.
Newsflow out of Asia this week has put paid to the market myth of a ‘quiet August’ as India and Indonesia, the region’s third- and fifth-largest economies, respectively, came under renewed selling pressure over widening current account deficits.
For long-time critics calling for economic rebalancing and the reining in of excessive credit growth in China, they may now be witnessing one of the stronger signs to date that China’s new leaders are serious about structural reforms.
The recent selloff we have seen in Asian markets following Federal Reserve comments on eventual drawing down, or ‘tapering, of quantitative easing (QE) has seen valuations on Asian stocks come down to attractive levels.
Asian local currency bonds have various intrinsic strengths, which make them an alternative safe haven asset with low correlations to risk assets.