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.