Big China Call By Marc Faber
Words from the man himself:
China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.
Bloomberg story: China May ‘Crash’ in Next 9 to 12 Months, Faber Says. Well, like most of his calls, this could also be on target.
On the data front: Chinese central bank increased reserve requirements by 50 basis points effective May 10. This brings the reserve requirements to 16.5% for the biggest banks and 14.5% for smaller ones. Today, a news story is claiming an increase to 18% is around the corner. Bloomberg link: China Bank Reserve Ratio May Increase to 18%, Beijing News Says.
The official China PMI rose from 55.1 to 55.7. A indication of a consolidation in growth.
1. China PMI’s
Source: Bloomberg