Chinese Trade Data figures have boosted the Aussie dollar. Sentiment rose when official figures revealed China’s trade surplus for May exceded previous predictions. This suggests the economy has been underrated and points to growth opportunities.

People's Bank of ChinaThe People’s Bank of China has leapt on these figures to reduce the reserve cash ratio in an attempt to encourage banks to lend more. This will obviously have the effect of further stimulating economic growth in this already fast moving economy. And such a n optimistic move is bound to attract overseas investors to further stimulate the economy.

Economists are watching these proceedings very carefully. Growth is all well and good, so long as it is sustainable and prudent. The People’s Bank of China are also cautiously optimistic about the figures. They have shown in the past they are not afraid to put the brakes on should they deem the Chinese economy to be growing beyond a rate good for itself. It seems likely they will manage the over-enthusiasm of investors with the same equanimity.

One thing is for certain – the People’s Bank of China will support the continued growth of China, but manage it very carefully.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.