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24-06-2013, 05:11 PM
(This post was last modified: 24-06-2013, 05:51 PM by felixleong.)
http://www.marketwatch.com/story/japan-s...2013-06-23
Shanghai stocks plunge 5.3%, weigh down Asia
Shanghai index ends below 2,000 after worst drop in nearly 4 years
Short-term interbank interest rates in Shanghai, which hit record highs on Thursday, further extended their drop from those levels but stayed above the 6% level Monday, according to Dow Jones Newswires.
Worries about high interbank rates have surfaced at a time when several brokerages have downgraded their outlook for the Chinese economy. Goldman Sachs on Monday cut China’s economic growth forecast to 7.4% for 2013 and to 7.7% for 2014.
MADRID (MarketWatch) -- Goldman Sachs became the latest investment bank to downgrade its forecasts on China growth for this year and next, citing tighter financial conditions. In a note dated June 23, Goldman said it now expects real gross domestic product growth at 7.5% year-on-year in the second quarter of 2013, from 7.8% previously. It expects GDP growth of 7.4% and 7.7% for 2013 and 2014, respectively, from 7.8% and 8.4%, previously. "The recent tightening of the interbank market has sent a strong policy signal that the strong credit growth earlier in the year will likely not continue," wrote economist Li Cui in a note. Goldman joins HSBC, Morgan Stanley and UBS who have all recently cut their growth forecasts on China.
Shanghai stocks plunge 5.3%, weigh down Asia
Shanghai index ends below 2,000 after worst drop in nearly 4 years
Short-term interbank interest rates in Shanghai, which hit record highs on Thursday, further extended their drop from those levels but stayed above the 6% level Monday, according to Dow Jones Newswires.
Worries about high interbank rates have surfaced at a time when several brokerages have downgraded their outlook for the Chinese economy. Goldman Sachs on Monday cut China’s economic growth forecast to 7.4% for 2013 and to 7.7% for 2014.
MADRID (MarketWatch) -- Goldman Sachs became the latest investment bank to downgrade its forecasts on China growth for this year and next, citing tighter financial conditions. In a note dated June 23, Goldman said it now expects real gross domestic product growth at 7.5% year-on-year in the second quarter of 2013, from 7.8% previously. It expects GDP growth of 7.4% and 7.7% for 2013 and 2014, respectively, from 7.8% and 8.4%, previously. "The recent tightening of the interbank market has sent a strong policy signal that the strong credit growth earlier in the year will likely not continue," wrote economist Li Cui in a note. Goldman joins HSBC, Morgan Stanley and UBS who have all recently cut their growth forecasts on China.
