China can evade related consequences from the subprime mortgage crisis in the United States, according to two renowned Chinese economists, the Shanghai Securities News reported today.
Wang Qing, chief economist of Morgan Stanleyâ€™s Asia-Pacific region, said that the Chinese economy will not slow even if the US suffers an economic retreat.
Wang cited a ratio to show that China has enough room for further expansion of financial policies. Meanwhile, the great bulk of forex reserves and soaring investment in fixed assets also are favorable factors for Chinese economic growth .
Gao Ting, deputy general manager of China International Capital Corp Ltdâ€™s research department, showed little concern over the Chinese stock marketâ€™s liquidity, as long as the bad subprime debts problem remains confined to the financial field.
Gao believed there are some ways to relieve the impact of USâ€™ subprime mortgage crisis.
Injecting money into the markets or by elevating interest rates are adopted by other nationsâ€™ central banks to prevent the crisis from spreading .
Upgrades to Chinaâ€™s own export structure will make the country more flexible in front of a demand shift in the foreign market, and China is also capable to stimulate the domestic demand via proper financial measures.