BLACK CHINA BLOG >> China Economy


We have witnessed the beating of the Aussie in the last few weeks. The market darling has been supported by a variety of positive factors until recently. Some of those positives for the Aussie included strong fundamentals in the Australian economy; a good proxy for China’s growth; a strong proxy for commodities and a place […]

By: June Wang | Read More

China’s export-led model is changing, as appreciating currency and rising labour costs start to have their effect, and as potential devaluation from foreign currencies also lingers. Wages in China have grown well above 10% in the last decade. Together with the effect of RMB appreciation, particularly in the last 10 years, wage growth is actually […]

By: June Wang | Read More

We sure have had a busy week. Geopolitical risk grew to its most alarming point with an impending missile launch from North Korea; as a result, talks were held, defense systems were engaged, and warships were deployed. Next, investors became equally frightened by the tragic bombing in Boston and the below-consensus blow of a soft […]

By: June Wang | Read More

The recent announcement from the NDRC on making adjustments to the Chinese fuel price pricing system, aims to bring flexibility to the market. The move potentially benefits Chinese refineries, as it let loose the domestic fuel price, allowing it to move more in sync with the international crude oil price. While this is a step […]

By: June Wang | Read More

With heightened concerns over China’s leverage, non-performing loans and property market bubble, the market is anticipating some form of crisis originating from the banking sector.We believe there are increasing risks in the Chinese financial system, however, the risk is not as severe as they were for the US prior to the Global Financial Crisis. A comparison […]

By: June Wang | Read More

 300Kt It is mid-March and the SRB has moved to purchase 300Kt, just like it did before. The motive is clear; the SRB desires to provide support to the falling aluminium price, which has hurt almost half of the smelters in China on a cash cost basis. The purchase price has not been revealed yet, […]

By: June Wang | Read More
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