For some time now I have been describing China’s “impossible trinity”, the difficulty it faces in managing capital flows, currency value and interest rates as the US Fed tightens while it slows. Goldman today mulls what its options are:
In the past week we met with investors in Guangzhou and Shenzhen, and the tone remains very negative…would like to see policymakers provide more targeted lending to help with refinancing needs, and view that the recent liquidity injections are too broad to be able to alleviate the market concerns.
Over the past week, we met with a number of investors in Guangzhou and Shenzhen. Most were equity investors, together with a number of macro and credit asset managers.
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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.
