The official growth figure was put this week at 6.9% and shows, says business analyst Shaun Rein at Money Control, the country has enough room to grow, at least at the short term. “The fears over China are largely unfounded at least in the short-term.”
Ekta: Can you tell us how to read the China data, there is industrial production plus the Q3 gross domestic product (GDP)?
A: The cue that the GDP is coming out at 6.9 percent growth. A lot of analysts are expecting 6.6-6.7 percent GDP growth. The last time I was here I had said that the economy in China is weak but not as weak as a lot of analysts think and I had also said that there should be some opportunity in commodities and in terms of emerging market currencies. However, the GDP number in China coming out at 6.9 percent today, shows that there is still even more room to grow in commodities and in emerging market because the real estate sector is still growing strong, consumer confidence is still strong. Therefore, the fears over China are largely unfounded at least in the short-term.
Nigel: After this particular data point, do you expect more money to move towards China. Do you see that India gets its share of allocation?
A: I think India, Indonesia and Malaysia are going to get their share. A lot of the hedge funds especially were overly concerned about China, they pulled everything out of the whole Asia Pacific region, went back into the United States and into the Euro zone, but now there is strength in the Chinese economy, we are going to see a rebound in Malaysian Ringgit and Indonesian Rupiah especially and India is also getting benefit from more investors coming in. You also see Mark Zuckerberg from Facebook, he is going to make another trip to India soon. So I think India is poised to do well with international investors.
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