Banking News
- Deutsche Bank: U.S. subprime crisis has limited impact on China economy
Date: 5-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 4 (Xinhua) -- China can still maintain robust economic growth even if the subprime credit crisis slowed down the U.S. economic growth, according to the Deutsche Bank AG.
'China's economic growth rate would be less than one percentage point lower if that of the U.S. slowed down by one percentage point,' said Ma Jun, chief economist for Greater China at Deutsche Bank AG in Kong Kong, said on Tuesday.
China's economy can still easily grow more than 10 percent if the U.S. economic growth rate slowed to 0.7 percent in the second half of 2007, Ma noted.
China's economy expanded by 11.5 percent during the Jan.-June period compared with the same period last year.
'The U.S economic downturn also has limited impact on the profitability of the listed firms on China's equity markets as a whole,' Ma said, adding it can only seriously affect eight percent of the total stock market capitalization in the country.
'Although another major correction of the U.S. stock markets may prompt the H-shares in Hong Kong to slump in the short term, but the robust corporate profit earnings and sufficient liquidity can help them recover more quickly than any other emerging markets even in case of big correction.'
'We don't have big worries that the U.S. subprime credit crisis can affect the Chinese economy greatly as well as its stock markets in the middle term,' Ma added.
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