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Capital Market Reforms in China

Capital Market Reforms  in China
Capital Market Reforms  in China

China’s slowing economy has many investors worried – they shouldn’t be. China’s slew of capital markets reforms offer foreign investors a host of new opportunities, Global Risks Insight reported. China’s slowing growth in recent years has many claiming that investment opportunities in the country are drying up as the economy matures. China grew at a year-on-year rate of 7% in Q1 2015, with annual growth also forecast at around 7%, the lowest rate in decades. China’s massive growth has also led to massive debts, with total debt (government, corporate, individual) increasing four fold since 2007, reaching $28 trillion. These trends, combined with recent low industrial output and stock market volatility, have led some to predict trying times ahead for investors. China is fully aware of the challenges facing a maturing economy, and has engaged in a vigorous reform program. To promote consumer spending, the Chinese government has recently announced a 50% reduction on cosmetics, clothing, and footwear tariffs. Further tax cuts are also planned on a wide range of imported consumer goods to increase consumer spending.

 

 

Financialtribune.com