SaxoTV

Loong: China's targeted approach is not working

224 views
September 24, 2014 asia, asia growth, asian markets, bank, bank of america, bank of england, bank of england governor, bank of japan, banking, banking crisis, banking equity, banking industry, banking regulation, banking sector, banking system, banks, banks stocks, banl, china, china 2014, china banks, china consumer spending, china credit bubble, china economy, china economy growth, china equity market, china gdp, china growth, china in 2014, china manufacturing, china outlook, china pmi, china policy, china politics, china rates, china slowdown, china stock market, chinarai, chinese, chinese economy, chinese yuan, chui, debasement, debate, debates, debt, debt bubble, debt ceiling, debt ceiling 2011, debt ceiling deadline, debt crisis, debt deal, debt dealine, debt extention, debt level, debt limit, debt shutdown, debt to equity, debteconomy, profit, properties, property, property bubble, property developer, property developers, property development, property market, property prices, property tax, saxo bank, saxo tv, sia, tradingfloor.com
The latest flash PMI from China suggests manufacturing picked up slightly, but there are still deep concerns about the massive Chinese property market - with prices slipping for four months in a row. The government is now urging banks to ease mortgage lending rules, because property and the associated debt – form the foundations of the world’s second largest economy.

Pauline says "What businesses need is a shot of confidence – a firm belief that the government will do whatever is needed to arrest the slide in the economy. Offering a bucket of cheap money here and a bucket of cheap money there is not going to help. It is too late for tinkering." 

With more and more investors at risk from exposure to China, Pauline explains what she thinks the government in Beijing should be doing to avert a broader crisis caused by the property market slump.