China Rebuts Economy Doomsayers

Chinese economic and financial officials responded to worries about bad debt, ‘zombie companies’ and currency depreciation over the weekend, insisting that doomsayers were underestimating the economy’s resilience and the government’s ability to balance growth with reform.

Volatility in the currency and stock markets has reverberated around global markets, largely because they’re thought to be the symptom of deeper problems in the economy. Chinese officials used tightly controlled press appearances on the sidelines of the annual rubber-stamp parliament to try to restore confidence after their reputation for policy competence has been bruised.

Central bank chief Zhou Xiaochuan — whose three major press appearances in the last month count as a charm offensive by the standards of his normally tight-lipped institution — appeared relaxed amid signs that markets have settled after turmoil in stocks and currencies.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam