China tightens capital account again, again

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Chin’a early stage financial crisis is in the spotlight again today, via the FT:

“I think the Trump factor [will result in] more aggressive hiking of US interest rates, not just the one expected in December but also several times next year,” said Shen Jianguang, chief economist at Mizuho Securities in Hong Kong, speaking ahead of the Federal Reserve meeting which is widely expected to raise rates next week.

“A stronger US dollar will complicate the Chinese government’s efforts to stabilise the renminbi exchange rate and Beijing may have to tighten monetary policy,” he added.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.