Mizuho Securities analyst Shen Jianguang sees the growing possibility of a trade deficit in...

|By:, SA News Editor

Mizuho Securities analyst Shen Jianguang sees the growing possibility of a trade deficit in China as prompting the nation to take action to try to reverse the tide of its trade balance. "China’s capital outflows will continue and the trade surplus may shrink further, forcing the central bank to cut reserve ratios and use bill sales to inject liquidity and bolster growth."