China Raises Bank Reserve Requirement for Third Time in 2011

China raised bank reserve requirement from 19.5% to 20% for large banks. I’m beginning to take kind of bearish stance on China because this sort of measures does not bode well for fixed-asset investment fueled economic growth.

Japan earthquake/tsunami/nuclear disaster nagative effect on Chinese  manufacturing is also, in my opinion, widely underestimated.

Bloomberg: China Raises Bank Reserve Requirement for Third Time in 2011 on Inflation

China raised banks’ reserve requirements for the third time this year, judging that inflation remains a bigger threat to the world’s second-largest economy than Japan’s earthquake and nuclear crisis.

This entry was posted on Friday, March 18th, 2011 at 7:49 am and is filed under China. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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