Beijing Likely to Relax Policies Amid Euro Crisis

The Chinese government is likely to rein in tightening measures amid the ongoing debt crisis in Europe, reports the South China Morning Post, citing the UBS.

 

Pu Yonghao, chief Asian investment strategist at UBS, told the Post that the financial turmoil in Europe may prompt China to raise interest rates only once this year. "The tightening will be reconsidered and they may have to adopt less aggressive policies," Pu told the Post.

 

The Post notes that Europe contributes around 20% of China's total overseas sales, making it the latter's biggest export market.


 

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