Stable growth Chinese economy – nrc.nl

Economy

The Chinese economy grew by 7 percent in the second quarter of 2015, the lowest growth rate of the economy since 2009, according to figures from the national statistics office.

figures show a slightly stronger growth than expected. Analysts had expected an increase of 6.9 percent. In the first quarter, the figures grew by 7 percent.

The Chinese market authorities seem to succeed in interrupting the free fall of the stock exchanges of Shanghai and Shenzhen. The losses were from mid-June until this week rose to 3.200 billion dollars. That is eleven times the total debt of Greece, wrote NRC correspondent Oscar Garschagen. If this decline in the Chinese stock markets spread to the Chinese economy, the world economy will notice that.

‘Investing in China is highly risky “

According Garschagen are the causes of the problems on the markets clear.

“The vast majority of shares were overvalued and takes care about stagnant growth, also among the investing middle class that has woken. Invest, they have rediscovered, certainly in China highly risky. For many small capitalists, however, there are few alternatives: save does nothing and the real estate market stagnates.

Because of the strict controls on the export of capital – a communist legacy – they can not go to foreign exchanges so that only the Chinese exchanges in the hunt for quick wealth over. Entire families, streets and villages were at the fair. They drove prices up and ignored warnings from the authorities. “

Stock Exchange slicing

The Chinese stock market again went down today. A better than expected growth of the Chinese economy managed investor confidence does not recover. The Shanghai Composite Index delivered prematurely than 4 percent.

The trading of 790 Chinese companies was halted on reaching the allowable daily drop limit of 10 percent. May also suffer from the Chinese government are still not acted in 689 funds. Beijing hoped thus to prevent further panic selling after the Chinese main index last month, already 25 percent lost value.

Divided image

The other stock markets in Asia showed a mixed picture. The Hang Seng index in Hong Kong lost 1 percent. In Seoul, the Kospi gained 0.7 percent and the All Ordinaries climbed 1 percent in Sydney.

In Tokyo, the Nikkei ended 0.4 percent higher at 20463.33 points. The Japanese central bank decided the scale of economic support measures and to keep interest rates unchanged, but decreased its expectations for inflation and economic growth. The Japanese electronics company Toshiba fell 2 percent after reports that will leave CEO Hisao Tanaka in September because of the accounting scandal at the company. (Reuters / NRC)

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