Yu Jiang looks into the front window at his two-bedroom apartment in the center of Kangbashi, in China’s Inner Mongolia, and says he may buy another. The place has been empty for three years, as are as many as 90 percent of the units near it.
China’s relaxation of interest-rate controls has left cutting banks’ required reserves as the chief monetary tool to counter a slowdown, focusing attention on an option used in the past decade only during financial crises.
China’s inflation eased in August from a three-year high and industrial output growth moderated, adding to evidence that higher interest rates and lending curbs are cooling the world’s second-biggest economy.
Richard Gao said he grew up in China never expecting to own his own car. Today, the largest holding in his $2.7 billion Matthews China Fund is Dongfeng Motor Group Co., whose stock more than quadrupled last year as more cars were sold in China than in the U.S.