Analyst Point Out China Fears Overblown

The turmoil gripping China’s equity market doesn’t reflect the broader condition of the world’s second largest economy, some economists and analysts said, as Shanghai stocks resumed their downward spiral on Tuesday.

“The collapse of the equity bubble tells us next to nothing about the state of China’s economy,” Mark Williams, chief Asia economist at Capital Economics, wrote in a Tuesday note titled ‘Panic about China is overblown’.

“In fact, recent data have been more positive than the headlines might suggest, with large parts of the economy still looking strong. Policymakers in China also have the luxury of still being able to loosen policy if necessary,” he said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza