Developing Asian countries will drive the world economy in the next two years, the Asian Development Bank said today, but it warned of uncertainties from the United States and Europe.
The American Chamber of Commerce in China's annual survey reinforces growing pessimism in the foreign business community, as it grapples with a slowing Chinese economy and complains of increasing protectionism.
Structural reforms remain key to ensuring a steady 8 percent growth in medium term for the Indian economy, Standard and Poor's Global Ratings said on May 18, even as it saw India remaining largely insulated from ups and downs of Chinese economy
From mid-February largecaps have rallied about 30-40 percent and foreign direct investments have come down. It is perhaps the best time to book profits, says Udayan Mukherjee.
In an article posted on the website of Project Syndicate, he said the 'hopes' and 'fears' of global leaders at the IMF-World Bank Spring Meetings in Washington centre around China as its failure and success carry risks for the world economy.
The forecast comes as the industry is roiled by a collapse in prices, the fear of cheap Chinese steel flooding markets, and the social impact of cutbacks to production.
Paul Gruenwald of S&P says China's GDP is expected to come in at 6.3 percent this March quarter and between 6.5 and 7 percent for 2016.
Among all non-financial A-share companies, State-owned PetroChina Co topped the list with 1.05 trillion yuan (USD 162.8 billion) liability, official media reported today.
Speculation that "the Indian economy will surpass that of China" and "India will become a new engine for the world economy" are frequently heard and some analysts even conjecture that the Chinese model is inferior to that of India, an article in state-run Global Times said.
Markus Rodlauer, Deputy Director and Chief of Mission of China at the International Monetary Fund (IMF) and Eswar Prasad, Professor of Economics at Cornell University, explain the concerns around Chinese economy.
According to the rating agency, the continuous decline in crude oil prices and sluggish growth in China have prompted a reappraisal of global economic growth prospects, causing risk aversion to rise and financial market conditions to tighten.
High debt levels is the major problem in China, which may create a situation similar to that of 2008, says Jan Lambregts of Rabobank.
US oil futures for March CLH6 surged 13.5 percent on Thursday and Friday, erasing nearly half the losses racked up since the start of the year as bearish traders cashed out.
"Falling crude oil price provide us a headroom for increasing excise duty on petrol and diesel. It will help in meeting fiscal deficit target of 3.9 percent for the current fiscal," said an official source.
China's economy grew 6.8 percent in the fourth quarter of 2015
Robert Browne, Chief Investment Officer, Northern Trust is of the view that even as Chinese economy grappled with its domestic problems, India could be a major beneficiary of the resultant fall in commodity prices.
Overseas investors pulled out close to Rs 3,500 crore from the Indian equity markets in the New Year on concerns of renewed worries over the health of Chinese economy and sharp fall in crude oil prices.
America's approach has been to press China on the pace of its reforms, including additional measures for an orderly transition to a market-oriented exchange rate that responds to upward as well as downward market pressure.
The China Securities Regulatory Commission on Thursday suspended its recently implemented circuit breaker system. The system led to trading halts on two separate days this week amid selling. The circuit breaker most recently kicked in Thursday, when the CSI300 plunged more than 7 percent in early trade
Watch the interview of Mark Dampier, Head - Research, Hargreaves and Rajiv Kumar, Senior Fellow, Centre For Policy Research with Ronojoy Banerjee on CNBC-TV18 to discuss the state of Chinese economy and its impact on emerging markets.
The government had forecast full-year Gross Domestic Product (GDP) growth of "close to 2 percent", while private sector economists had expected growth to come in at 1.9 percent, according to the latest quarterly poll by the Monetary Authority of Singapore last month.
"Data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December," the data release said.
Gokul Laroia, Morgan Stanley's co-CEO for Asia Pacific, told CNBC there was "a real disparity between the new China companies and the old China companies in terms of growth and in terms of prospects."
The Chinese central bank cut its one-year deposit rate by 25 bps to 1.5 percent and also removed the cap on deposit rates for commercial banks and rural cooperatives.
Shaun Rein, managing director, China Market Research Group says while the Chinese economy is certainly weak, it is not as weak as most people are making it out to be. In fact he advised investors with a risk appetite to get into commodity stocks