In my opinion, the growth has been pretty stable and miraculously now that they are selling bonds (which they had not been doing since 2008), it just goes to show that they are actually gathering funds.
Why should they gather funds you might ask. China is already so rich!
Well there are 2 more prominent reasons, the first is to pay off the matured bonds coming this year and the second is to cushion the trade deficit that they will definitely experience. This is mainly because once they raise the interest rate, their currency strength will increase and their imports will surge while their exports will plummet!
Also their housing property asset bubble is going to burst soon and thus they need to assuage the damage by collating some funds to act as cushion to the forthcoming explosion.
In addition, the resource and financial shares have rose in Hong Kong partly due to the force exerted by China, it's apparently lifting the whole of the entire Asia market as it is the biggest export market for alot of Asian countries, i.e. Japan and Korea.
China is like a high tide and the rest of the countries are like surfers riding on the tide.
Right now, I believe that China is synonymous to a galvanising force that can obliterate anything that stands in its way. But how long can it dominate, that's the question.
When will it fall? That is the bigger question.
Let's stay tune and wait and see.
I guess the raising of interest rates is inevitable after all. At the end of the day, China has no choice but to capitulate as the world is scrutinizing her right now.
Credits -marketwatch, -alibaba, -betterphoto
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