Monday 10 May 2010


FAST-GROWING CHINA COULD BE SLOWED DOWN BY EUROPE'S FINANCIAL WOES

Michael Sainsbury

The Australian, May 11, 2010

THERE is growing concern in Asia that China and other economies across the region may become victims of the growing crisis in Europe, despite the banks being largely unexposed to sovereign debt in Western Europe and a lower level of government debt.

The most immediate threat looming for the region is a reduction in exports to Europe, China's biggest single market, as well as a replay of the rapid tightening of inter-bank lending that helped trigger the global recession.

Macquarie analyst Richard Jerram said most of the damage to Asia was more likely to come through the impact on the global financial system, but Asian banks had minimal direct exposure to Europe.

"We should assume that European regulators are prepared to supply liquidity and capital in the event of some form of default, as they have had six months to prepare, so a post-Lehman style seizure should be avoidable, but clearly there could be significant disruption, " he said. "This is the main risk for Asia.

(...) [artículo aquí]

No comments: