Friday, October 10, 2008
China's rate cut - FT Lex
--"It is tempting to cast China as the Asian economic powerhouse stepping up to the plate while Japan watchs from the sidelines". Sure, China is a big stakeholder, with $1.8 tril in foreign exchange reserves. --But one third of its GDP is from exports. Slowing global economy will surely dent its growth, and hence its job creation capacity - the bedrock of social stability. Slowing grow could also wreak havoc on the recently recapitalised banks, whose coffers have been swollen by writing more loans and whose non performing assets have been moped up."