Chinese banks surprised markets with a more modest-than-anticipated rate cut on Monday. The one-year loan prime rate (LPR) was reduced by 10 basis points to 3.45% – slightly above expectations of a bigger cut to 3.40%.…
The chief question of the 2024 election is whether US anti-establishment or populist politics is a viable electoral strategy, according to BCA’s US Political Strategy. That will have domestic and global effects not only in…
Before doctors prescribe treatments to a patient, they first make a diagnosis. The success of the treatment is contingent upon the accuracy of the diagnosis. The same is true for a country’s economy. Many commentators…
Despite the underwhelming economic recovery, Chinese authorities remain reluctant to open wide stimulus taps as much as they have in past economic downturns. This is corroborated by the PBoC’s marginal interest rate cut…
The conventional wisdom is that China’s economy is overly indebted and too reliant on residential construction and exports as drivers of growth. While there is much truth to these claims, they ignore the underlying…
The fiscal impulse philosophies of the two largest economies of the world are set to pull in opposite directions in 2023. After the massive fiscal stimulus of 2020, the US had been cutting back on its deficit. But US fiscal…
Chinese credit and money data fell significantly below expectations in July. The CNY 0.53 trillion increase in aggregate social financing marks a significant slowdown from CNY 4.22 trillion in June and came in significantly below…
On Wednesday, President Joe Biden announced that a new ban on some US investment into China’s quantum computing, advanced chips and artificial intelligence sectors will come into force next year. This latest escalation is…