China Growth Shocks Increasingly Driving Stock Market, IMF Says
- Effects underscore need for clear communication by Chinese
- Spillovers from emerging markets have increased for stocks, FX
Water vapor and smoke rise from a steel plant in the Erdaojiang district in Tonghua, Jilin province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Economic surprises in China are increasingly driving global stock-market returns, underscoring the need for clear and timely communication by the nation’s Communist Party policy makers, according to the International Monetary Fund.
There’s been a strong and steady increase over the last two decades in the impact of Chinese growth surprises on stock returns in emerging and advanced economies, the IMF found after analyzing the effect of Chinese industrial-production figures that missed market expectations.