Fears of a Chinese Economic Slowdown

Growing uncertainty over the Chinese economy has contributed to sharp falls in global share markets. There are mounting concerns over frenzied property speculation and the sustainability of the government’s stimulus measures, compounded by a series of strikes focussed in the country’s burgeoning auto industry.

The immediate trigger was the release of the Leading Economic Index for China produced by the New York-based Conference Board in the US on Monday. The rise in the index for April, originally reported as 1.7 percent, was revised sharply downward to 0.3 percent, sparking fears of a slowdown in China in the second half of the year. The Conference Board forecast an annual growth rate of 9 percent, down from nearly 12 percent in the first quarter.” Read more>>>