The next and perhaps final window for the PBOC to cut policy rate is 15 March as the Federal Reserve is starting a rate hike cycle next month.
The RMB remains very resilient despite PBOC efforts to rein the currency in as monetary policy divergence between China and the US grows ever starker.
China is almost certain to post record-high foreign direct investment figures for 2021 amid strong profits and a resilient supply chain.
We try to address seven major questions for Chinese economy in 2022, including Covid policies, consumption, regulatory crackdown, monetary policy, real estate, exports, and energy.
The Chinese economy faces greater downward pressure in Q1 from real estate, heavy industrials, and consumption.
Leaders have called for more pro-growth policies for 2022 and it has become “a political matter” for officials to stabilize growth.
Guangdong’s provincial government has sent a working group to take control of Evergrande as the developer can no longer repay its debt.
Governments at all levels are providing subsidies to these firms, while Beijing also launched a new stock exchange to help them grow.
Real estate developers are desperate for easing policies amid the deepening slump, but the latest reports and rumors have fallen short.