Economy / China
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The Outlook For Financial Market Reform
October 2006 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: Recent comments from various government bodies outlining forthcoming financial sector and economic reforms while calling for continued efforts to damp down potentially unsustainable investment and loan growth are encouraging. We expect Chinese growth to gradually temper, reducing the risk of industrial overcapacity and potential banking sector problems, provided fundamental reforms are eased into effect. Indeed, the authorities will pursue a conservative financial sector reform path, which should, theoretically, result in the eventual liberalisation of domestic markets and monetary policy without mightily disrupting macroeconomic stability.