25 Aug 2015
China’s structural headwinds - Nomura
FXStreet (Guatemala) - Analysts at Nomura commented on the circumstances in China.
Key Quotes:
"China seems to be at the epicentre of global growth concerns. The equity market sell-off, followed by FX regime change and RMB depreciation, have raised market concerns that a China hard landing could be upon us."
"It is true that economic growth momentum has resumed its downtrend, as July’s tier-one economic data was weaker than expected and last week’s Caixin manufacturing flash PMI dropped to 47.1 in August from 48.2 in July, its lowest reading since March 2009. It would appear that China’s structural headwinds, including overcapacity and over leverage are once again wearing on growth."
Key Quotes:
"China seems to be at the epicentre of global growth concerns. The equity market sell-off, followed by FX regime change and RMB depreciation, have raised market concerns that a China hard landing could be upon us."
"It is true that economic growth momentum has resumed its downtrend, as July’s tier-one economic data was weaker than expected and last week’s Caixin manufacturing flash PMI dropped to 47.1 in August from 48.2 in July, its lowest reading since March 2009. It would appear that China’s structural headwinds, including overcapacity and over leverage are once again wearing on growth."