Even if we shared the common view that China’s property market is in a bubble, the tax that seems likely to be introduced soon on residential property would not be a solution.

Consumer price inflation probably fell in December, as food prices finally stopped rising. Non-food inflation remains low and neither capacity constraints nor monetary growth look likely to push it...

The People’s Bank is shifting towards using reserve requirements as a primary tool to limit credit growth. This is another reason to believe that interest rates will not rise as far as many expect in...

President Hu Jintao’s visit to the US later in January will draw attention back to the renminbi. We believe that markets are underestimating the likely pace of appreciation over the year ahead. In...