Can China really engineer a 'soft landing'?

clock • 2 min read

Architas Multi-Manager's Nathan Sweeney asks has the market taken its eye off the ball when it comes to China?

I am referring to the gradual depreciation of the Chinese renminbi, which has been the catalyst for the aggressive routs in global markets over the past year. What do we know? We know growth in China is slowing. We also know companies in China are severely indebted and companies are struggling to cover even the interest payments on their outstanding debt with their current profits. This means they need to issue more debt, which will not end well. The expectation is that the Chinese government can engineer a ‘soft landing'. History will tell you that this rarely happens. That is why it...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

EFG's AfzL and Gerlach: A letter from Hong Kong

EFG's AfzL and Gerlach: A letter from Hong Kong

On a recent visit to Hong Kong and Singapore we took the opportunity to meet with market strategists as well as private and public sector economists to better understand the economic problems China is facing given economic sentiment is in the doldrums....

Moz Afzal and Stefan Gerlach
clock 28 March 2024 • 4 min read
Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Baylee Wakefield
clock 14 March 2024 • 4 min read
 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
Trustpilot