Hedge fund manager James Chanos is overly pessimistic about China’s property market because he underestimates government efforts to avoid a bubble, according to Fan Gang, a former People’s Bank of China adviser.
China doesn’t face the risk of inflation this year, as it did in 2006 and 2008, because the consumer price index is likely to be 3 percent to 4 percent, according to Fan Gang, a former central bank adviser.
China’s trade deficit in March showed that it’s incorrect to claim the country’s economy depends mainly on exports, Fan Gang, professor of economics at Peking University and a member of the monetary policy committee of the People’s Bank of China, said in a column in the China Daily today.
Chinese President Xi Jinping said the nation needs to adapt to a “new normal” in the pace of economic growth and remain “cool-minded” amid a slowdown that analysts forecast will lead to the weakest expansion since 1990.
China’s stocks rebounded from a four- month low, erasing a weekly decline by the benchmark index, as investors speculated inflation may ease in coming months, reducing the need for further tightening measures.
Chinese investors approached Alberta Investment Management Corp., a Canadian pension fund, to consider a joint counterbid for Potash Corp. of Saskatchewan Inc. , the fund’s chief executive officer said.