In the latest “Oliver’s Insights”, Dr. Shane Oliver looks at the recent volatility in the Chines share market, and the affects it may have on our economy.
The key points in the article are:
- Just as the rise in Chinese shares had little economic impact it’s hard to see the pullback having a significant economic impact either.
- Chinese economic growth is likely to remain “around 7%” with monetary and fiscal easing helping.
- The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
- The main dampener on commodity prices – and Australia’s terms of trade – is not China, but supply.
See Dr. Shane Oliver’s full article, China’s Share Market Volatility, for full details.