BLACK CHINA BLOG >> China Economy


The People’s Bank of China (PBoC) has announced yet another cut to interest rates and to the Reserve Requirement Ratio (RRR).   This makes 6 times in the last 12 months.   It seems the market took the sign as positive news, but that’s just a sign that markets aren’t perfect. These announcements about interest rates […]

By: Paul Adkins | Read More

China’s GDP came in at 6.9% according to the announcement this morning. It is one of those numbers that appears almost magical.   It’s above most analysts’ expectations, but just a shade below the official target of “about” 7%.  It’s almost as if the number was presented by the Ministry of Propaganda, such is the […]

By: Paul Adkins | Read More

The October edition of the Black China Report went out this afternoon. If you are a subscriber, you should have received an email from Jane Zhang – check your SPAM folder just in case.   We sent it out as a direct PDF this month, because the normal app that we use is still being […]

By: Paul Adkins | Read More

Tomorrow, Caixin and NBS will release the August PMI number. Caixin announced the flash PMI on August 21st and it was a record low at 47.1. We don’t want to predict what the final PMI reading is – it may be higher or stay the same. We just want to tell you if the final reading […]

By: Kathy Liu | Read More

I am often asked about what is going on in China when it comes to over-production and loss-making companies continuing to operate.   We have talked about how the local governments want to support their local banks and prevent Non-Performing Loans from creating problems.   As well, it’s a well-known narrative that local governments want […]

By: Paul Adkins | Read More

China tonight announced it would cut the main interest rate by 25 basis points, and reduce the Reserve Requirement Ratio by 0.5%. The interest rate cut is effective tomorrow, while the RRR cut kicks in early September, after the national holidays. The cut to the interest rate will put more downward pressure on the RMB. It […]

By: Paul Adkins | Read More
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