bertramhall
Member
- Aug 14, 2015
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China warns about further volatility of yuan and senior China economist Ma Jun declares that Beijing has no will for initiating a currency war but these preventions don`t seem so innocent.
China is suffering free fall in its stock markets which is in fact stipulated by the lack of experience of the stuff. The last data showed that about 90% of brokers have no special knowledge, experience and education for operating margin, moreover, the level of state intervention to the market economy is enormous. Thus, Chinese economy is a fanciful combination of free market, strong control from the government and traditional nepotism. Chinese economy is unpredictable and despite the fact that Beijing has cushioned the summer Chinese bubble burst, the volatility is still high, provided that the government control is not weakening. http://csis.org/publication/crisis-a...ck-markets-now
Could China profit this situation? Given that Beijing fully demonstrates its transparency of the economy preventing about instability on its stock markets the Chinese government conceal the intention of threatening the US economy. Devaluating yuan Chinese Central Bank automatically boost prices on Chinese goods, with the majority of bargains effectuated in dollars and China being the biggest importer to the US. US negotiations with other world powers on TPP really make Beijing feel nervous as the Treaty will restrain Chinese activity on the world market. Hence, the devaluation is likely to be an attempt to retaliate upon the US. The US underestimates China`s strength in the world economy and foreign affairs but the Dragon has already got up and is on the alert.
What`s your opinion on the yuan cut against the US dollar?
http://www.theguardian.com/business/...bank-economist
China is suffering free fall in its stock markets which is in fact stipulated by the lack of experience of the stuff. The last data showed that about 90% of brokers have no special knowledge, experience and education for operating margin, moreover, the level of state intervention to the market economy is enormous. Thus, Chinese economy is a fanciful combination of free market, strong control from the government and traditional nepotism. Chinese economy is unpredictable and despite the fact that Beijing has cushioned the summer Chinese bubble burst, the volatility is still high, provided that the government control is not weakening. http://csis.org/publication/crisis-a...ck-markets-now
Could China profit this situation? Given that Beijing fully demonstrates its transparency of the economy preventing about instability on its stock markets the Chinese government conceal the intention of threatening the US economy. Devaluating yuan Chinese Central Bank automatically boost prices on Chinese goods, with the majority of bargains effectuated in dollars and China being the biggest importer to the US. US negotiations with other world powers on TPP really make Beijing feel nervous as the Treaty will restrain Chinese activity on the world market. Hence, the devaluation is likely to be an attempt to retaliate upon the US. The US underestimates China`s strength in the world economy and foreign affairs but the Dragon has already got up and is on the alert.
What`s your opinion on the yuan cut against the US dollar?
http://www.theguardian.com/business/...bank-economist
