Asia is at the same time – the continent that brought us ” the ” geopolitical crisis of the year, the north Korean missiles, but also the two strongest signs of policy continuity with blow on blow in October, the re-election triumph of the japanese prime minister, Shinzo Abe, and the notable strengthening of the power of the president Xi Jinping, at the 19th congress of the chinese communist Party. His “thinking” has been officially registered in the party’s constitution, which installs ” Xi ” in the seat of the Great Helmsman of the Twenty-first century, only Mao Zedong who had before him such an honor her living.
“The main economic message of this 19th congress, is one of continuity,” says Gustavo Horenstein, economist and managing director at Dorval AM. The technical reforms aimed to streamline the financial system will continue without any real economic liberalization, the idea being instead of transforming the large state-owned enterprises in international champions, in the image of what you did in Korea or Japan. With respect to macroeconomics, the slowdown trend of the growth is going to continue with the rebalancing of the economy towards consumption. “The political power the chinese appear, in addition, in an effort to lead a prudent monetary policy : instead, it has a tendency to raise rates to try to curb the increase in credit, before it (re) becomes a concern for the world.
The direction that is favorable to chinese equities ? “Yes, writes Michel Audeban, director-general of Gemway Assets, the management company specialist in emerging markets. The chinese government is going to slower growth, but better quality. This is good news for investors : thus, China is moving quickly to reduce its overcapacity industry (steel, coal), which will result in groupings…
