While the Hang Seng index has rebounded significantly in July, equity prices in Shanghai have changed little, although the cash crunch has passed. Meanwhile, the renminbi has been kept stable.

If China has dropped into deflation, as many now claim, one implication is that stimulus would succeed in driving a sustainable economic rebound. But evidence of deflation is weak, at best. This is...

China’s forthcoming audit of government debt will shine a welcome light on a murky part of the economy. Based on what we know at present, the overall government debt situation has actually improved in...

We are deeply sceptical of the argument that the renminbi now needs to weaken to reach its market value. On the contrary, we continue to expect it to edge higher this year and make further gains in...