Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (405)	8/18/2003 11:56:25 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

ANALYSIS-China headed for inflation, deflation or both? Reuters, 08.18.03, 4:04 AM ET By Alan Wheatley, Asian Economics Correspondent SINGAPORE, Aug 18 (Reuters) - To some economists, it's only a matter of time before China's rampant money growth fuels the sort of inflation that makes the country's Communist rulers nervous. To others, it's obvious that breakneck investment is boosting China's excess capacity, presaging a relapse into deflation at home and fresh downward pressure on global goods prices. Unfortunately for policy makers craving clarity about the world's fastest-growing economy, both are right. "In fact, China is suffering both inflation and deflation at the same time. There is a property bubble in the big cities, but there are strong deflationary pressures in some parts of the economy, particularly those suffering from problems in state-owned enterprises," Gerard Lyons and Tai Hui of Standard Chartered Bank said in a report. forbes.com