Saturday, October 31, 2015

IMF WARNING FOR REGION ABOUT CHINA SLOWDOW


Warning on slow growth

Friday, October 30, 2015




An official from the International Monetary Fund has warned China's slow overall growth will have a strong impact on other countries in the region.The Shanghai Composite Index gained 0.4 percent to 3,388 points yesterday but the Hang Seng Index turned lower, slipping 0.6 percent to 22,819 points. Investors awaited the release of growth targets in China's 13th Five-Year Plan.
Wall Street was volatile overnight, ending sharply higher thanks to Apple Inc.
Fund manager Schroders believes in the medium term, global economic growth prospects remain reasonable.
China's slowdown will hurt the global economy. But there is still reasonably good growth in developed countries. Lower oil prices can stimulate consumer spending in the United States and Europe while real wages rise.
Right now, I like Bank of China (Hong Kong) (2388). The stock, with a 4.4 percent dividend yield, is at HK$25 25 percent below its peak reached in May.

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