Credit Suisse: China will hike 100 basis points more

By Edward Harrison On Nov 18, 2010

Rumours are that a hike is coming tomorrow already.

Fan Cheuk Wan, who is head of research at Credit Suisse Private Bank’s Asia/Pacific region, says she wouldn’t be surprised to see as much as 100 basis points in the near-term. But she doesn’t see China’s tightening becoming "aggressive". In her view, the loose monetary policy (negative real rates) are simply being normalized to reduce excess credit growth. The Chinese authorities do not want to choke off growth. As a result, she thinks growth and the earnings cycle will still stay positive. So she is bullish on shares.

(video clip below).

China interest rates

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

Hopes of an Irish Rescue Package Reignite Dollar Weakness

On Knowing When To Be An Asshole And Other Links

Comments are closed.