Liao Ping says it’s like winning the lottery when he convinces a worker to accept a job offer for Luyang Shoes Co. at his roadside stand in China’s southern Guangdong province. “Sometimes I get two in a day, most times the result is zero.”
Ben Simpfendorfer , an economist at Royal Bank of Scotland Plc, comments on the People’s Bank of China’s decision to raise banks’ required deposit reserve ratio today. The central bank will raise the ratio by 50 basis points effective Dec. 20.
Ten years ago, China barely registered on global financial markets. Today, it is front and center. Yet, the market’s understanding of the world’s second- largest economy has struggled to catch up. It is big, foreign, and suffers from a serious lack of economic data, meaning speculation can be as important as fact.
The high-speed rail link China Railway Construction Corp. is building in Saudi Arabia doesn’t just connect the holy cities of Mecca and Medina. It shows how Asia, the Middle East, Africa and Latin America are holding the world economy together.
China’s economy grew 9.6 percent in the third quarter and inflation accelerated to the fastest pace in almost two years, adding weight to calls for the engine of the global recovery to let its currency appreciate more rapidly.