Mitsui Credit Global: The Korean Won’s weakness boosts its exports
while Chinese manufacturing growth slows sharply in July.
Mitsui Credit Global: Though economists have
warned that recent data
showing that Chinese manufacturing growth slowed sharply in July may be
misleading, there is little doubt that the stats emanating from will be misconstrued any time soon. The
country’s currency has been weakened by highly accommodative monetary policies,
which have given it, and the country the opportunity to cash in on the
competitive advantages a weaker currency affords.
Giants
like Samsung, LG and the country’s automakers are reporting record sales even
as the huge stimulus that lit a fire under China’s economy appears, at first
glance to be wearing off if only slightly.
The signs of a Chinese slowdown manifested themselves in data showing its
manufacturing growth in July was the slowest for 17 months.
Beijing’s efforts to pour cold water on excessive property speculation and to
shut down businesses that use energy inefficiently in order to satisfy climate
change goals were reported to have been contributing factors to the cooling down.
Frankly, Mitsui
Credit Global doesn’t think there’s any immediate slowdown on the
horizon for China. $2 trillion-worth of foreign currency reserves says very
much otherwise. We’re still incredibly bullish on Asia; we don’t see an
immediate let up in the flow of quantitative easing from the US Federal Reserve
and, consequently, we see the search for yield among US investors continuing
for some time to come.
Mitsui
Credit Global is still of the opinion that full year Chinese economic
growth could still reach 9.5% and while Korea is a little more difficult to pin
down, there’s no arguing with the benefits of a weaker currency.
Their exports were up for the ninth consecutive month jumping by nigh on 30%
compared with the same month last year.
About Mitsui
Credit Global:
Providing value to their customers is their
single core value. They make strategic investments they know they can build
with their deep industry knowledge, with the goal of later selling at profit.
Using their industry leading One Mitsui Credit Global network platform,
combined with their Operational Excellence team and strong analytical and data
driven knowledge, they create and manage custom plans for each of their private
equity and real estate investments. Our strong successes enable our investors
to reach their goals, such as pension funds enabling the secure retirements of
millions of
public employees.
Contact Mitsui Credit Global:
16F / Yodoyabashi Mitsui Building
4-1-1 Imabashi, Chuo-ku, Osaka-shi,
Osaka, 541-0042
http://www.mitsuicredit.com
pr@mitsuicredit.com
81662534321
