With China’s economy showing signs of recovery as the country begins to emerge from the COVID-19 epidemic, we can’t lose commercial sight that China remains incredibly important in the medium-long term to Australia.
Unless you are a speculator, uncertainty is not a friend to financial markets. Volatility in prices and returns keep investors on the sidelines, dampening economic activity and slowing growth in the process.
China remains a difficult market to do business for many companies across multiple sectors and executives remain concerned about the Chinese economy, increasing protectionism and rising employment and operating costs.
Today’s media reports that China’s Central Banking Regulator (CBRC) is investigating the domestic banking sector’s exposure to global investments made by several privately owned group companies is another example of direct action being taken by Chinese regulators to address capital outflows and high domestic debt levels.