Professor Wang Depei, Vice President of the China Society of Economic Reform and Chief Economist of Forecast Thinktank, delivered a speech on Chinese Economy under the New Normal, saying that China’s economic growth is likely to be kept at a rather stable level.
Prof. Wang was well welcomed by the audiences.
Wang pointed out that China’s economic policies tend to be more supportive to entity economy than to financial economy.
“Chinese economy won’t break down as expected by many western economists,” he predicted, “China’s economic growth will remain stable. Old forms of economy have yet to retire from the world but emerging economies are blossomy.” However, these emerging economies may entail risks that are not perceived by many.
According to Prof Wang, the devaluation of RMB is much due to fears prevailing among the market participants. He holds that Chinese economy is progressing too rapidly in marketization, leading to oversupply of money. The monetary settlement has fostered the foreign trade; China’s land has absorbed a big proportion of excess money supply. Based on the two points above, Chinese yuan has no reason to devalue, not to mention to depreciate over a long time.
Symbolised by the rise in US interest rate late this year, Wang expected that there will be a possible risk of a second financial crisis, some currencies will, as a consequence, collapse but the US dollar and Chinese yuan will remain comparatively firm.
At last, the professor suggested that there is not a simple ‘yes’ or ‘no’ to the future. Policies and strategies remain uncertain. It is very important for us to be visionary, to see the world today in the future-bound perspective. As for the iron and steel markers, Prof. Wang ascertained that the darkest time for iron and steel market is over.
-Edited by Mysteel.net
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