Bloomberg

01/21 04:06 ET

KEY TAKEAWAYS: Lagarde Backs China on Yuan, Calls For Better Communication, Clarity of Purpose; Chinese Officials Jiang and Fang Say the Government Economic Reforms Is On Track; Global Markets Volatility Cannot All Be Blamed on China

So we're wrapping up now, from what was a very vigorous discussion, covering a wide range of issues. Here are some key points:

* Lagarde backs China on the yuan but calls for better communication and clarity of purpose

* Chinese officials Jiang and Fang say the government is pushing through vital reforms and is on track

* Volatility in global markets cannot all be blamed on China

Enda Curran Chief Asia Economics Correspondent

01/21 04:06 ET

Thanks for watching our TOPLive coverage of this panel on the Chinese economy from Davos at the World Economic Forum annual meeting today.

Please tell us what you think. TOPLive is a Bloomberg product that delivers real-time news and analysis in a new format. Message Colin Keatinge, TOPlive editor, at ckeatinge@bloomberg.net with feedback.

See {TLIV } for a schedule of other events coming up.

Foster Wong TOPLive Editor

01/21 04:05 ET

And in the face of several questions about her future at the IMF, Lagarde declined to comment...

Enda Curran Chief Asia Economics Correspondent

01/21 04:04 ET

The PBOC unveiled a CFETS RMB Index in December and said yuan fluctuations mustn’t be measured in terms of the greenback alone. The new measure monitors moves against a basket of trading partners’ currencies and was introduced by the China Foreign Exchange Trade System. A Bloomberg replica of that gauge is at 100.92 as of 4:36 p.m. Thursday.

China’s New Yuan Index: Here’s What the Market Needs to Know

Tian Chen Bonds/FX Reporter

01/21 04:02 ET

How much is China contributing to world growth? It matters whether you look at GDP in yuan or dollar terms, says Bloomberg Intelligence economist Tom Orlik.

Justin Jimenez Bloomberg Intelligence Editor

01/21 04:01 ET

Before we end, here are some final points on the Chinese economy.

Colin Keatinge TOPLive Editor

01/21 04:00 ET

And we're done, the panel ends. Thanks so much for following this live coverage.

Colin Keatinge TOPLive Editor

01/21 04:00 ET

Zhang Xin says China is committed to long term reforms.

Enda Curran Chief Asia Economics Correspondent

01/21 03:59 ET

Dalio is pushing back on Fang's idea that governments can cooperate together to combat the global slowdown, he says more likely is the outbreak of a currency war. He also says fiscal policy remains hostage to politics.

Enda Curran Chief Asia Economics Correspondent

01/21 03:59 ET

Dalio asks "what form" the cooperation Fang is calling for will take. That's the rub, especially given U.S.-China tensions outside the economic sphere, in an election year.

Nisid Hajari Bloomberg View

01/21 03:58 ET

As the panel starts to wrap up, another look at how China's stocks have stumbled recently.

Allen Wan Stocks Editor

01/21 03:57 ET

Fang takes Dalio to task for saying China will be a negative for world growth. The Chinese official says all the major countries will need to work ore closely and cooperate more.

"We are all on the same boat."

Enda Curran Chief Asia Economics Correspondent

01/21 03:56 ET

Bloomberg Intelligence analyst Tim Craighead points out that China’s market capitalization to GDP has pulled back toward historic norms. At the same time, state-owned enterprise reform and a transition to consumption and services should improve overall profitability. If these initiatives are successful in 2016-2017, investors will need to revisit the right valuation multiple to apply on core economic activity.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:56 ET

Clarity of Communication and Purposes, Reforms Implementation Are Three Priorities for China: Lagarde

Lagarde lists three priorities for China:

* Clarity of communication

* Clarity of purpose

* Implementation of reforms they have promised

Nisid Hajari Bloomberg View

01/21 03:56 ET

Lagarde again ducks a question on whether she will run for a second term as IMF MD but repeats her view that China needs to improve the clarity of its communication.

Enda Curran Chief Asia Economics Correspondent

01/21 03:56 ET

Taking on the data doubters, Fang said tax-revenue numbers line up with the GDP growth rate. Here's Bloomberg Intelligence Economics' big look at China's data reliability:

Part 1:

INSIGHT: China GDP — a Deep Dive on Data Reliability, Part 1

Part 2:

INSIGHT: China GDP — a Deep Dive on Data Reliability, Part 2

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:55 ET

Jiang says he is hoping for a recovery in the world economy and that volatility is reduced.

"I hope China will succeed in its structural reforms and adjustment and to avoid the middle income trap."

Enda Curran Chief Asia Economics Correspondent

01/21 03:53 ET

CATCH-UP: Panel Supports China's Changes; Chinese Officials Says Economic Transition on Track; More Needs to Be Done

Here's a summary of some of the points we've heard so far:

* The panel supports China's changes to its exchange rate regime, though its communication needs to be improved

* The Chinese officials say the nation's economic transition is on track

* More needs to be done to push through key reforms like shaking up the SOE sector

* Lagarde says China needs to communicate its policy on the yuan better

* The Chinese panelists agree and says the nation is learning how to improve its signalling

* Volatility in global markets can't all be pinned on China

Enda Curran Chief Asia Economics Correspondent

01/21 03:51 ET

China's Economic Adjustment to Take Three Years: Dalio

CORRECT: Dalio reckons China's adjustment is going to take three years and remain a negative for the world economy in that period, especially for commodities.

"There is a world deflationary pressure that exists."

Colin Keatinge TOPLive Editor

01/21 03:49 ET

Jiang emphasizes that green growth is a central priority for the regime. Not just lip service:

We are very determined on one point: Any industry, any sector that is not in line with environmental protection, we will resolutely not allow them to be established.

Nisid Hajari Bloomberg View

01/21 03:47 ET

Fang sticks up for the battered stock market, noting that last year 1.4 trillion yuan of equity capital was raised for Chinese companies, the most in the world. On financial risk, he strikes another optimistic note:

``China's different from other developing countries. Our growth is largely fueled by domestic savings.''

Matthew Brooker Gadfly Editor

01/21 03:47 ET

What do you think of our TOPLive coverage? TOPLive is a Bloomberg product that delivers real-time news and analysis in a new format. Send feedback to Colin Keatinge at ckeatinge@bloomberg.net.

If you like our coverage enough to share it in IB, we've added that functionality, ONLY if you're reading in the LaunchPad view. Go to the upper right corner, to the right of Options, and you'll see a diagonal arrow; drag and drop it into IB.

Foster Wong TOPLive Editor

01/21 03:46 ET

Fang on fears of a financial crisis:

Our growth is largely fueled by domestic savings. That gives us confidence in our ability to deal with whatever risks are coming out of the financial markets.

Nisid Hajari Bloomberg View

01/21 03:44 ET

On the issue of China’s foreign-exchange reserves, economists surveyed by Bloomberg forecast the amount tumbling $300 billion this year to a level near what some analysts say risks undermining confidence in the central bank’s ability to defend the currency.

China Seen Losing Another $300 Billion in FX Reserves This Year

Allen Wan Stocks Editor

01/21 03:44 ET

Fang concedes that the data could be more accurate but says the figures are ``not so far from the truth.''

Matthew Brooker Gadfly Editor

01/21 03:43 ET

Fang says China can't afford to let the growth rate drop "too sharply." He's right that China's got the means to prop up growth. The question remains, though: What kind of problems is that storing up for the future?

Nisid Hajari Bloomberg View

01/21 03:43 ET

China's Economic Data Is "Not Far From the Truth": Fang

Fang describes China's fiscal and monetary policy as appropriate and hoses down worries of a hard landing. On the veracity of China's data, he points to a 6.6% increase in tax revenues in 2015, GDP grew at 6.9%.

"Which means the figures are not far from the truth."

Enda Curran Chief Asia Economics Correspondent

01/21 03:42 ET

Fang gets on to the issue of the accuracy of China's economic data.

Matthew Brooker Gadfly Editor

01/21 03:42 ET

China Can't Afford to Let 2016 Growth Rate Slow Down Dramatically: Fang

Fang says he doesn't think China's growth rate will slow down dramatically this year, says the government can't afford to let this happen as it would lead to more financial problems.

Matthew Brooker Gadfly Editor

01/21 03:41 ET

Despite critiques about the yuan's weakness against the dollar, the trade-weighted yuan continues to be one of the strongest currencies globally, according to Bloomberg Intelligence analyst Tim Craighead.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:41 ET

Yuan Will End 2016 Lower as China Decouples From Dollar: Cohn

Cohn says Wall Street strategists are predicting the yuan will end the year lower than now as China decouples from the dollar.

Simon Kennedy Chief International Economics Correspondent

01/21 03:40 ET

First awkward moment of the session. Bloomberg anchor asks Lagarde if she wants a second term at the helm of the IMF. Cue nervous laughter. Lagarde sidesteps and says she can't comment on that right now.

Enda Curran Chief Asia Economics Correspondent

01/21 03:39 ET

Yuan one-year volatility versus the U.S. dollar underlines Cohn's point that most market participants expect the currency to be devalued further:

Matthew Brooker Gadfly Editor

01/21 03:39 ET

There seems to be broad agreement that China's changes to its exchange rate regime are the right ones, though they need to communicate those steps more clearly. Cohn says most traders expect more weakness:

"Most of us think it will be slow and methodical."

Enda Curran Chief Asia Economics Correspondent

01/21 03:38 ET

China's Forex Reserves Rundown Are "Big Issue": Dalio

Dalio thinks rundown of China's FX reserves are "a big issue."

Nisid Hajari Bloomberg View

01/21 03:38 ET

Cohn backs China on the changes to the yuan:

"It makes total rational sense to me."

Enda Curran Chief Asia Economics Correspondent

01/21 03:37 ET

Here's a longer item on Fang's point about "no basis" for depreciating currency:

CSRC’s Fang Says China Has ‘No Basis’ for Depreciating Currency

Colin Keatinge TOPLive Editor

01/21 03:36 ET

Jiang, being at the helm of China's biggest bank, may have a slightly different perspective from the CSRC. As Fang notes, stock market volatility has relatively little impact. Jiang is dealing with the issue of debt every day. Just as an aside, ICBC stock is trading at a record low valuation in Hong Kong.

Matthew Brooker Gadfly Editor

01/21 03:36 ET

ICBC Chairman Also Says U.S. Mid-Long Term Treasuries May Rise

Colin Keatinge TOPLive Editor

01/21 03:36 ET

PBOC Should Take Action on `Unreasonable' FX Volatility: ICBC's Jiang

Jiang Says PBOC Should Take Action on `Unreasonable' FX Volatility

Colin Keatinge TOPLive Editor

01/21 03:35 ET

Zhang Xin says demand for office space in Beijing and Shanghai is coming from new-economy internet firms, not old- economy industry.

BI economist Tom Orlik points out that Bloomberg's New Economy and Old Economy Indexes tell a similar story. High-tech, the private sector and services are stable. Low-value added, the state-sector and manufacturing are not doing so well.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:34 ET

Supply-side reforms are a hot topic. Nobel-prize-winning economist Joseph Stiglitz said last week

government’s new focus on these reforms could precipitate a deeper downturn if not accompanied by measures to boost demand. capacity and labor in state enterprises, cutting taxes and boosting productivity.

China Not Facing a ’Cataclysmic’ Slowdown, Stiglitz Says (2)

Allen Wan Stocks Editor

01/21 03:33 ET

Jiang plays a straight bat:

"The decisive factor for the value of a currency is the fundamentals of the country."

Enda Curran Chief Asia Economics Correspondent

01/21 03:32 ET

Data showing investors' bearish bets on the yuan and their willingness to hold the dollar just came in. Chinese banks sold net 568.3 billion yuan of foreign-exchange for their clients in December, the State Administration of Foreign Exchange said just now. That was more than twice the amount in November.

China Banks Sold Net 568.3b Yuan of Forex for Clients in Dec.

Tian Chen Bonds/FX Reporter

01/21 03:32 ET

"Moving toward a basket approach is the decided policy of China," says Fang. Data show that on a trade-weighted basis, the yuan has been stable, points out Bloomberg Intelligence economist Tom Orlik.

Here's our latest look at China's exchange rate:

INSIGHT: Back So Soon? Causes and Impact of PBOC FX Intervention

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:31 ET

Chinese Stocks Valautions Still Rich: CSRC's Fang

Fang says valuations of Chinese stocks are still rich. He's right: Even after this year’s rout, the median Chinese company on mainland exchanges is valued at more than 50 times reported earnings, the highest level among the world’s largest markets.

Allen Wan Stocks Editor

01/21 03:31 ET

China Needs to Make Exchange Rate Regime Plans Clearer: IMF's Lagarde

Lagarde gave her full backing to China's changes to its exchange rate regime but said officials in Beijing need to make their plans clearer.

Enda Curran Chief Asia Economics Correspondent

01/21 03:31 ET

Lagarde says having a certain degree of volatility is alright. She says that China's illusion of pegging against the dollar has to be dismissed. In effective terms against a basket the yuan has been stable.

"That should be appreciated and acknowledged by the markets."

Enda Curran Chief Asia Economics Correspondent

01/21 03:29 ET

By comparison, ICBC Chairman Jiang has sounded more downbeat to me: The problems are ``very difficult'' and will take ``courage'' to solve.

Matthew Brooker Gadfly Editor

01/21 03:28 ET

Fang's right about depreciation, as economist Chris Balding pointed out recently. It won't help China in the way it once might have, given the smaller role exports play:

Cheapening the Yuan Won't Ease China's Woes

Nisid Hajari Bloomberg View

01/21 03:28 ET

The tone of Fang's comments might be characterized as defiant: Yes, there are problems, but we're dealing with them, and we have the leadership, capability and talent to do so.

Matthew Brooker Gadfly Editor

01/21 03:28 ET

Bloomberg's Lacqua raises the crucial question: how long can lending continue to outpace growth in real economy? BI Economics calculates outstanding credit has risen to 209% of GDP in 2015.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:27 ET

No Basis for China to Depreciate Yuan Amid Economic Transition: Fang

``There's really no basis for China to depreciate the currency,'' says Fang, directly contradicting Dalio. ``Depreciating the currency is not in the interests of China in terms of carrying out our transition strategy.''

Matthew Brooker Gadfly Editor

01/21 03:26 ET

Fang says:

"Stock market volatility should not be something that people should be so concerned with."

Matthew Brooker Gadfly Editor

01/21 03:24 ET

The transition to consumer driven growth is underway, says Fang. Bloomberg Intelligence economist Tom Orlik says the data show that's correct, but slowly and from a low base:

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:24 ET

Chinese Debt Growing Faster Than Income is Unsustainable: Dalio

Dalio says trend of Chinese debt growing faster than income is "unsustainable" but "understandable."

Nisid Hajari Bloomberg View

01/21 03:24 ET

Dalio says an adjustment in the yuan would send deflation around the world.

Enda Curran Chief Asia Economics Correspondent

01/21 03:23 ET

Lagarde asks the big question: How concerned are you about a financial crisis given the level of debt?

Matthew Brooker Gadfly Editor

01/21 03:23 ET

Incidentally, here's a chart on China's stocks and GDP compared with Europe and the U.S. The difference in volatility and periodic disconnect with economic activity is clear, according to Bloomberg Intelligence analyst Tim Craighead.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:22 ET

China's Growth May Slow to 6.5 Percent This Year: ICBC's Jiang

ICBC's Jiang says China growth may slow to 6.5%. It was 6.9% for 2015.

Chris Anstey Economy Managing Editor

01/21 03:22 ET

Innovation is Vital to Shake Up China's Economic Model: ICBC's Jiang

The first mention of innovation goes to Jiang, He says it's vital for China to shake up its economic model and avoid the middle income trap.

"We are paying more attention to the quality not the quantity of economic development so we have to proceed with structural reforms. In future we cannot depend on investment."

Enda Curran Chief Asia Economics Correspondent

01/21 03:21 ET

Lagarde may be speaking as the current and future chief of the IMF. Today she picked up nominations from across Europe for a second term atop the lender. Germany, France and the U.K. All endorsed her.

Simon Kennedy Chief International Economics Correspondent

01/21 03:21 ET

Lagarde uses the ``very intense'' SDR discussions to heap more praise on China's technocratic management capability. She says she doubted whether Chinese authorities could complete the required reforms.

Matthew Brooker Gadfly Editor

01/21 03:20 ET

Lagarde says China has the appetite to pull off key reforms when it wants to.

"We have seen an unbelievable determination and an ability to deliver what many would have said was undeliverable to begin with."

She says supply side reforms are the buzz word in Beijing.

"It's a massive undertaking, let's face it."

Enda Curran Chief Asia Economics Correspondent

01/21 03:19 ET

Dalio Says China Debt Restructuring Being Managed `Superbly'

Colin Keatinge TOPLive Editor

01/21 03:19 ET

IMF Believes China Will Deliver on Reform: Lagarde

Lagarde: IMF Believes That China Will Deliver on Reform

Colin Keatinge TOPLive Editor

01/21 03:19 ET

While China has the talent, will that talent stay if quality of life issues like breathable air aren't addressed, says Bloomberg Intelligence economist Tom Orlik.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:17 ET

China's Cyclical Adjustment May Last Two to Three Years: Dalio

Dalio says "cyclical adjustment" may last two-three years. But he's unquestionably bullish on the Chinese leadership:

"A bad year in China is a good year in almost any other country."

Nisid Hajari Bloomberg View

01/21 03:17 ET

Another post on Twitter here from the WEF on the panel:

World Economic Forum @Davos

People want the marketplace, not the government, to decide which Chinese companies should access capital: Gary D. Cohn #wef #globaltrade

Morwenna Coniam Social Media Monitor

01/21 03:16 ET

No Loose Cannons in China: Dalio

Dalio says China's policy makers aren't getting the credit they deserve and brings up former leader Zhu Rongji as a model.

"There are no loose cannons that are going to be running China. If you look at politics in the West and leadership there, that can be quite scary."

Enda Curran Chief Asia Economics Correspondent

01/21 03:16 ET

Here's the latest on China's plan to move to a U.S.-style registration system rather than having the CSRC decide which companies should be allow to go public:

Chinese Lawmakers Pave Way for Start of Market-Based IPO System

Matthew Brooker Gadfly Editor

01/21 03:15 ET

Here is a Recap of Today's Discussion so far:

Here is a recap on where the discussion has led so far:

* Lagarde says China needs to communicate its policy on the yuan better

* The Chinese panelists agree and says the nation is learning how to improve its signalling

* Volatility in global markets can't all be pinned on China

Enda Curran Chief Asia Economics Correspondent

01/21 03:14 ET

Cohn latches on to the issue of how markets rather than bureaucrats need to decide which companies get capital, which companies are allowed to go public. China has been talking about this for many years, and it's still a work in progress.

Matthew Brooker Gadfly Editor

01/21 03:13 ET

Fang sounds like he is favoring SOE companies:

``Opportunity lies in supply-side reforms.''

Allen Wan Stocks Editor

01/21 03:13 ET

While Fang says China "has the talent" in government to handle new problems, he also admits markets have become vastly more complex. There's a real question whether the traditional system of trusting in a small circle of technocrats to manage the economy really is viable anymore.

Nisid Hajari Bloomberg View

01/21 03:12 ET

The yuan has steadied following the turbulence of the first week of 2016, trading broadly flat since Jan. 11 as the PBOC made only minor changes to the daily reference rate after lowering it 1.1% over Jan. 4-7. The offshore yuan, meanwhile, is down around 0.5% since Jan. 1, and the CNH-CNY spread has narrowed considerably.

Will Davies Rates/FX Editor

01/21 03:11 ET

Fang tempers the humility of his earlier China-needs-to- learn comments with this:

``These are short-term challenges. China has the talent.''

Matthew Brooker Gadfly Editor

01/21 03:11 ET

Currency strategists in Asia have also expressed the need for the PBOC to do a better job in communicating its foreign- exchange policy.

China’s Yuan Formula Baffles Analysts Who Can’t Predict the Fix

Tian Chen Bonds/FX Reporter

01/21 03:11 ET

What do you think of our TOPLive coverage? TOPLive is a Bloomberg product that delivers real-time news and analysis in a new format. Send feedback to Colin Keatinge at ckeatinge@bloomberg.net.

If you like our coverage enough to share it in IB, we've added that functionality, ONLY if you're reading in the LaunchPad view. Go to the upper right corner, to the right of Options, and you'll see a diagonal arrow; drag and drop it into IB.

Foster Wong TOPLive Editor

01/21 03:10 ET

ICBC's Jiang, IMF's Lagarde, CSRC's Fang:

Kyoji Iwai TOP Editor

01/21 03:10 ET

Fang says China has "strongest leadership in the world at this point." Lagarde breaks out laughing.

Nisid Hajari Bloomberg View

01/21 03:10 ET

Fang's message is that there is a strategy and the transition is happening: consumption as a share of GDP has gone to 52.5% last year form 49% five years ago.

Matthew Brooker Gadfly Editor

01/21 03:09 ET

Lots of agreement on how China needs to communicate better, Fang puts it this way:

"You have to be patient our systems are not structured in a way that is able to communicate seamlessly with the market. China can learn I can assure that."

Enda Curran Chief Asia Economics Correspondent

01/21 03:09 ET

China's Economic Transition is in Right Direction: Fang

Fang is talking up the economy's transition from debt fuelled investment to consumption.

"It could be faster, it could be bigger but we are moving in the right direction."

Enda Curran Chief Asia Economics Correspondent

01/21 03:09 ET

That comment from CSRC's Fang on being "here today to communicate" spurred a chuckle from the audience.

Chris Anstey Economy Managing Editor

01/21 03:08 ET

Fang says "we're learning" and "I am here to communicate." But admits system isn't structured in a way "to communicate seamlessly with the market." Refreshingly honest.

Nisid Hajari Bloomberg View

01/21 03:08 ET

Fang says China's policy makers need to communicate better.

``We should do a better job. And we are learning.''

Matthew Brooker Gadfly Editor

01/21 03:07 ET

ICBC's Chairman Jiang: "It's a test for China to have better communications to prevent misunderstanding."

Enda Curran Chief Asia Economics Correspondent

01/21 03:07 ET

Here's the WEF itself posting on Twitter:

World Economic Forum @Davos

Communicating what the Chinese market is going to be is what is important now: Gary D. Cohn wef.ch/1Va72wL #wef #globaltrade

Morwenna Coniam Social Media Monitor

01/21 03:06 ET

China's stock market has historically shown a high degree of volatility that is divorced from economic fundamentals, says Bloomberg Intelligence analyst Tim Craighead.

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:05 ET

As Zhang Xin says, there's a major disconnect between the tone of markets so far this year and the economic outlook:

China Panic Clashes With Outlook for Modest Growth Slowdown

Chris Anstey Economy Managing Editor

01/21 03:05 ET

Stock Market Trades at Discount to China's Real Economy: Soho China's Zhang

That was an interesting take on the disconnect between the stock market and real economy from the Soho China CEO. She says the real estate market is doing well. Real economy is going ok, but "the stock market is trading at a huge discount."

Enda Curran Chief Asia Economics Correspondent

01/21 03:04 ET

Zhang suggests investors aren't ``getting the same message'' on the real transition that's happening in the economy. That's debatable -- the Shanghai Composite is still trading at a higher P/E ratio than its average over the past six years.

Matthew Brooker Gadfly Editor

01/21 03:04 ET

Packed auditorium taking it all in as the panel discuss China.

Kyoji Iwai TOP Editor

01/21 03:03 ET

Better Communication Needed by China's Policy Makers: Goldman's Cohn

Again, on that point from Goldman's Cohn - he weighed in on the need for better communication by China's policy makers.

"It's a communications issue."

Enda Curran Chief Asia Economics Correspondent

01/21 03:02 ET

``We used to build buildings; today we just manage the leasing,'' says Soho China's Zhang Xin, as an example of the transition from investment-led to consumption-based growth.

Matthew Brooker Gadfly Editor

01/21 03:02 ET

A lot of sympathy and understanding for China's position here.

Matthew Brooker Gadfly Editor

01/21 03:02 ET

Lagarde isn't alone in drawing attention to China's communication challenges. Here's a look at others:

China ‘Sloppy’ Policy Irks Blankfein as Yellen Cites Doubts

Chris Anstey Economy Managing Editor

01/21 03:01 ET

U.S. Interest Rate Hike is Market Volatility Factor: CSRC's Fang

Fang Xinghai says the U.S. interest rate increase is a factor in market volatility.

Here's a chart from BI economist Tom Orlik, which shows rate differentials between China and the U.S. are a driver of yuan weakness:

Justin Jimenez Bloomberg Intelligence Editor

01/21 03:01 ET

Good reminder from Cohn: Western countries have intervened in their markets, too, in the not-so-distant past. Distinction is how well the moves are communicated and explained.

Nisid Hajari Bloomberg View

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