Washington Post, February 13,2010 page A16:
John Lonski, Chief economist at Moody's investors Service noted that China has been a very important customer for US exports with merchandise shipments to China growing by 38% in the 4th quarter of 2009 compared with the same period a year earlier to set a record high I am not convinced that the second hiking of China's reserve requirement within a one-month span necessarily implies that the Chinese economy is about to slow by enough so that US activity suffers materially...but it is a warning that one ought not to be complacent about the outlook for Chinese growth.
My comment: That remains to be seen. Investors are overly sensitive about such news affecting their behavior. As far as I envision,China's economy is still growing and authorities are cautious about overheating to take action in monetary policy for moderation. There is psychological impact in the stock market as I see it.
Francis Shieh aka Xie Shihao on Feb.13, 2010 at 2.40 p.m.
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