Wah lah eh! Believe it or not!
Hey people the new year started with lots of excitement. It’s all over the news. China economy may overheat with a 16% growth this year – when the develop nations are struggling. This was on th1e 12th Jan 2010 news as the Chinese government researches announced. In the first week of 2010, bank loans were reported to be in the tune of 600 billion yuan (RM 294 billion). All these according to the officials are pent-up demand from late 2009.
Today 13th January, China in such speed announced a mopping up policy with their tightening monetary policy. This mop up operation is expected to be in the region of RM 98 billion to RM 147 billion. (www.pcb.com.cn) this reserve requirement ratio (RRR) will take effect 18th January 2010. This is the kind of speed how a world class country makes and implements policies. The RRR is expected to continue to be increase with a few more percentage points till June 2010 according to analyst. So there is no issues here and should benefit the Asian countries as China takes preventive actions in preventing an overheating of their economy.
Point here is that develop countries will continue to use fiscal spending to stimulate their country’s economy growth now till end of 2010. While this is so, the whole of developing nations (especially Asia) will enjoy an unprecedented growth after a recession (caused by the sub-prime loans from our big brother, the USA) as it is fueled by China’s double digit growth.
So don’t miss the boat again and looking back with a drop jaw. Call me at + 6012 322 3278 to invest in Public Mutual’s new “Islamic Asia Equity Fund” as Asia continue to recover. Call now.
Have a great year ahead.
Tj
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