The International Monetary Fund (IMF) has cut its growth forecast for China in 2013 to 7.75%, down from 8%, after weak global demand and reduced exports took its toll on the world’s second-largest economy.
Low factory activity in April and May led many economists to predict reduced growth levels for China this year, a stance now supported by the IMF. Bank of America Merrill Lynch (BofA Merrill), for instance, lowered its China forecast earlier this month to 7.6% from 8%, while Standard Chartered cut its estimate to 7.7% from the 8.3% it had previously been predicting.
The IMF’s revised forecast is above the Chinese government’s own target of 7.5% of growth this year, but in-line with general parameters. There is no suggestion that growth is going to stall dramatically, but rather fall back to a more manageable level.
In the past, slowing growth in China has been met by government stimulus packages, although the consensus this time is that there will be no boost from policymakers as the nation becomes more tolerant of a slightly slower, more manageable economic growth speed.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.