3. Putting a floor under the stockmarket
The ability to buy and sell shares was seen as an example of China’s growing financial maturity. But when the Shanghai Composite index fell by 30% in a month earlier this year, the government stepped in. The central bank supported share buying, a state-backed wealth fund bought up stocks and fund managers were prevailed on not to sell until the market had recovered. Far from restoring calm, the moves suggested Beijing was afraid of a damaging crash.
Beijing was afraid of a damaging crash.と言うのは間違ってて、意図的に
相場を動かしてバブル益を回収したということかもしれないということですね。
底が抜けるのを慌てて手当てしたという行動と矛盾がある解釈ですが、後で
良く考えてみないといけないですね。
4. Declining exports
A move away from an over-dependence on exports is official government policy. But the recent weakness in the sale of goods overseas has been more marked than expected, and has helped to contribute to declining world trade and the drop in commodity prices. The cost of maintaining the yuan’s level against the US dollar has been a drop in foreign exchange reserves and an 8.3% drop in exports in the 12 months to July.
5. A cheaper currency
As a result of its weakening economy, China has abandoned its currency peg with the dollar and reduced the yuan’s exchange rate on three separate occasions this week. Beijing has put a brave face on this move, saying it is designed to get the yuan included in the International Monetary Fund’s reserve assets known as special drawing rights. A more obvious explanation is that China is seeking to boost growth by making its exports cheaper – a return to the growth model it is supposed to be abandoning.
