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Has Chinese Premier Wen Jiabao given risk markets a big green light? Writing in the FT, he says...

Has Chinese Premier Wen Jiabao given risk markets a big green light? Writing in the FT, he says China's battle against inflation has worked, with price levels expected to "drop steadily" from here. A key market worry - tight money and a slowdown in China - may have just been lifted. Asian markets and commodities are up sharply. Non-paywall summary here.
Comments (9)
  • monz55
    , contributor
    Comment (1) | Send Message
     
    funny I heard the NDRC saying justthe other day that inflation will likely tick up in the next month. but also people are calling for a peak in inflation in july so I suppose it comes down to verbage.
    24 Jun 2011, 02:13 AM Reply Like
  • pogeystickjoe
    , contributor
    Comments (4) | Send Message
     
    MIssion Accomplished!
    24 Jun 2011, 02:25 AM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    It's part of a two pronged attack - first, get oil prices lower, and secondly boost global stock markets.

     

    All well and good, but the fact remains, growth is slowing as a consequence of the debt overhang.

     

    For what it's worth, I don't see much evidence that the battle against inflation has been won.
    24 Jun 2011, 02:58 AM Reply Like
  • macca
    , contributor
    Comments (37) | Send Message
     
    The only thing that is straight out of China is their hair!!!
    24 Jun 2011, 04:17 AM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    He is worried about his stock market and financial system.
    24 Jun 2011, 06:07 AM Reply Like
  • laogao
    , contributor
    Comments (88) | Send Message
     
    @macca, try to keep it about stocks and investing.

     

    This announcement, coupled with the oil release should move the market up till the end of the month. They had to do something, or the "end of QE2" could make too much money head for the exits.
    24 Jun 2011, 06:36 AM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1381) | Send Message
     
    “There is concern as to whether China can rein in inflation and sustain its rapid development,” Mr Wen said. “My answer is an emphatic Yes.”

     

    Famous last words?

     

    China's rapid growth is largely coming from irresponsible lending, so it's not clear to me how "its rapid development" can come without inflation. Once the lending spree ends, there are going to be massive deflationary pressures, as a result of money being destroyed in poorly thought out investments. The only way inflation keeps up if there's another round of ill-advised lending.
    24 Jun 2011, 07:12 AM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    Kudos. Someone who understands deflation!
    24 Jun 2011, 08:00 AM Reply Like
  • miinijoe
    , contributor
    Comment (1) | Send Message
     
    This is a calculated announcement which is nothing but a political move by current China communist party leaders to defend challenges from within China communist party itself.
    24 Jun 2011, 08:31 AM Reply Like
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