China Resorts to Old Growth Drivers as New Engines Struggle
(Bloomberg) -- Stephen Roach, a senior fellow at Yale University and former non-executive chairman for Morgan Stanley in Asia, Jeffrey Rosenberg, chief fixed income strategist at BlackRock Inc., and David Woo, a currency analyst at Merrill Lynch, offer their views on China's decision to devalue the yuan. This report also contains comments from Credit Agricole CIB's Dariusz Kowalczyk, State Street Global Markets' Michael Metcalfe, and UBS Group AG's Geoffrey Yu. Watch all the key moments from their interviews in two minutes. (Source: Bloomberg)
China has stepped up efforts to boost old growth drivers as new ones fail to offset slowing investment and trade, with the currency slumping after policy makers allowed markets a greater role in setting its value.
The yuan slid in the biggest rout since 1994, with losses deepening Wednesday after output, investment and retail reports trailed economists’ forecasts. The currency depreciation comes after policy makers had already expanded a debt swap program to ease financing pressure on local governments and injected funds to policy banks so they can channel credit to the real economy.