Monday, September 12, 2005
I don't have enough information to comment on the deflation issue, but expectation of further interest rate hikes in the US and the resulting slow-down in capital flow to China alone should compel them to shift gear. I am also interested in the lending slow-down. Perhaps CCB and BOC are in defensive mode in terms of preserving capital adequacy ratio before listings. If that's the case, NDRC is speaking on behalf of cash-starved industries. I wonder whether the joint-stock banks are also slowing down lending.
Check it out if you get time :-)