China Case for Stimulus Building as Manufacturing Weakens at Most Influential China Conferenc

Aug. 24, 2012 - PRLog -- (August 16, 2012, New York) Bloomberg reports that China’s manufacturing may be contracting at a faster pace this month, signaling more monetary and fiscal stimulus is needed to secure a second-half rebound in economic growth, as it will be debated at China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", New York, October 2nd.

A preliminary reading of 47.8 for a purchasing managers’ index released today by HSBC Holdings Plc (HSBA) and Markit Economics compares with July’s final 49.3 figure. If confirmed, it would be the lowest level since November and the 10th month that the reading has been below 50, the longest run in the index’s eight- year history.

The world’s second-biggest economy may slow for a seventh straight quarter even after interest-rate cuts in June and July and accelerated investment approvals to counter an export slowdown. People’s Bank of China Governor Zhou Xiaochuan said yesterday that adjustments to rates and bank reserve requirements can’t be ruled out, as minutes of a Federal Reserve meeting fueled speculation that U.S. officials will ease.

“Weak PMIs will likely put more pressure on the PBOC to loosen monetary policy by cutting the reserve requirement ratio,” said Zhang Zhiwei, Hong Kong-based chief China economist at Nomura Holdings Inc. who formerly worked for the International Monetary Fund. “Export weakness in July may have continued into August.”

The report adds to evidence of a global slowdown that’s boosting pressure on governments and central banks to step up efforts to support growth. Many U.S. Federal Reserve policy makers said additional stimulus probably will be needed soon unless the economy shows signs of a durable pickup, minutes of the Fed’s July 31-Aug. 1 meeting released yesterday showed.

Chicago Fed President Charles Evans told reporters in Beijing today that “I certainly would applaud anybody who takes action in order to strengthen their economies,” including China.

China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", October 2nd, New York City, will provide attendees with the most up-to-date review of where the Asian giant stands and the challenges and opportunities for businessmen looking to expand their business with China when others only see growth contraction. Topics that China Leaders Forum 2012 will discuss include:
•   Internationalization of the Renminbi
•   Post- crisis relationship between US and China
•   The Euro Debt Crisis and How it will Affect the Chinese Economy
•   China’s Investments in Europe: To Save or Not to Save the Euro?
•   What steps China will need to perform in order to maintain its growth and success?

Recognized experts, regulators, and strategists, will return to China Leaders Forum 2012 in its fourth edition to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.

China Leaders Forum 2012 is produced by Golden Networking, the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.