This is from an important leading indicator for the economy. the country produced, the Chinese business magazine Caixin that presented in a first estimate on Friday. The record low since 2009 leading to nervousness on the markets. Finally, the global economy was at that time after the bankruptcy of investment bank Lehman Brothers in crisis mode. Therefore, the poor performance now prolongeth worried about the state of huge importance for the world economy the country.
According to the data of the purchasing managers’ index of the manufacturing industry went (PMI) in August from 47.8 points the previous month at 47, 1 points back, but analysts had expected a value of 48.2. “The decline is mainly due to the slowing Chinese industrial production, the decline in commodity prices and weak exports,” writes Thu Lan Nguyen, an analyst at Commerzbank.
values above 50 points indicate a growth of the economy while values indicate below the critical mark a decline in economic activity.
“character in the capital markets at storm”
The gloomy mood in the Chinese industry fired again, concerns about weakening growth locomotive China , “This morning, the signs on the capital markets to storm,” said Dirk Gojny, an analyst at the National Bank. Concern about the strength and prospects of the Chinese economy to take now still. The exchanges gave way to new figures from Beijing to greatly. The Japanese Nikkei slumped below the mark of 20, 000 points. The DAX also gave in the morning when had not so strong as investors previously feared.
In the currency market, the China concerns strengthened the Euro. The single currency approached the morning in the meantime the brand of 1.13 US dollars, reaching the highest level since the end of June. Growing worries about China weaken the US dollar, because they are seen as a major stumbling block for a speedy turnaround in interest rates in the US.
Attack the BANK OF NEXT ONE?
Lothar Hessler, an analyst at the bank HSBC Trinkaus, believes that the Chinese central bank will now resort to other measures in order to grab the domestic economy under the arms. After the surprising yuan depreciation over a week ago, is now expected to monetary easing. “The key interest rate is expected to be reduced in the current quarter by 25 basis points to 4.60 percent,” estimates Hessler. A lowering of interest rates affects supportive to exports because it makes domestic goods abroad cheaper. Many analysts believe that the Chinese central bank had already made the yuan devaluation with the intention to grab the weakening export under the arms.
The Institute of German Economy (IW) in Cologne demanded in addition to the economic and political liberalization in China. “The economic model has reached its growth limit,” it said in an analysis. “There is still only on economic freedom, while it makes no social, political and legal freedoms.” Without this, it would, however, be for the People’s Republic of “impossible” to go the next step of development. “And that also endangers the weak global economy.”
The Chinese growth will likely settle at an average of only five percent, the institute predicted. “For nations such as Germany, which rely on the export of capital goods, which represents a considerable need for adjustment – unless the Chinese government thinks sustainably by”, goes on to say
For weeks GROW investor concerns. ” / p>
A few weeks ago the concerns of investors about China’s economy to grow, because they are not so well developed as previously expected. From January to June, the Chinese economic power had grown in the first half of 2014 by seven percent. However, experts believe that the actual growth has slipped far below this level.
China’s government subjecting the country’s economy even the largest renovation in decades. The country wants to become less dependent on exports and not continue the extended workbench of the world. Instead, innovation is encouraged and a high-tech sector are set up.
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