For China Economy, Brexit Seen as a Negative, or an Opportunity
- UBS sees opportunity to strengthen the U.K.-China relationship
- Pimco: ‘China should see this as a chance to enhance its role’
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After Britain’s vote to leave the European Union roiled global markets, economists are grappling with how best to gauge the potential impact on China. Views range from downbeat scenarios such as Brexit contagion weakening the yuan or undermining exports, to optimistic ones where China emerges as a safe haven amid the storm.
Beyond the currency impact, economists are trying to untangle other issues such as whether China benefits from a likely delay of U.S. interest rate hikes, how it will respond to market turbulence, and whether the domestic economy and capital flows will suffer.