China’s economy may still grow about 7.5 percent this year, despite signs of a slowdown, and there is no immediate need for the Chinese government to roll out fresh stimulus measures, Asian Development Bank (ADB) president Takehiko Nakao said yesterday.
Nakao, former Japanese vice minister of Finance for International Affairs, told reporters that he expects China’s economic growth to be still roughly in line with the Chinese government’s target.
ADB is revising its forecast on China’s growth for this year, currently at 7.5 percent, he said, but did not elaborate.
Chinese leaders face a challenge to keep the economy on an even keel, while forging ahead with a long list of market-based reforms announced at a key party meeting late last year, Nakao said.
He said that some short-term stimulus might be needed to smooth out ups and downs in the economy, but there was no immediate need as growth remains healthy due to the country’s ongoing urbanization and rising consumption.
“At this moment, I don’t think China needs to resort to a stimulus package,” he said.
“Our judgement of China’s economic growth is that it will continue to grow at the rate of around 7.5 percent.”
Concerns about the health of the Chinese economy are mounting after a string of data showed growth is faltering, raising doubt over the fulfillment of Beijing’s growth target in the absence of fresh stimulus measures.
The Asian bank president said he was impressed by Chinese leaders’ commitment to market-oriented reforms to help put the economy on a more sustainable footing, but they needed time to implement them.
Liberalizing interest rates and the currency regime in China should “go hand in hand,” and interest rate liberalization could be carried out in a step-by-step manner to ward off possible banking risks, he said.
He said Asian economies were more prepared to cope with any economic turbulence and the region’s fundamentals were much stronger than they were during the Asian financial crisis in the late 1990s.
“They are more prepared to take action quickly if there are signs of instability,” Nakao said. “Fragility? I don’t buy that idea. Of course, we cannot be complacent, we should always be prepared.”
Japan’s monetary policy easing, which has supported the economy and boosted the country’s foreign direct investment flows to the rest of the Asian region, could help offset any impact from the withdrawal of the US Federal Reserve monetary stimulus, Nakao said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and