chinese interest rates

Asian Markets Slide After Chinese Interest Rate Hike

Chinese investors returning from the New Year holiday were greeted by a 25 basis point hike in interest rates. The Shanghai Composite Index lost 0.9%, in Hong Kong the Hang Seng Index fell 1.4%, and in Japan the Nikkei 225 Index declined 0.2%.

China Should Raise Its Currency Instead of Rates

China's decision to raise rates to contain food and housing price increases is a missed opportunity to move the country toward a more domestic-oriented economy. A higher yuan would slow exports, but it would be a bigger overall benefit to China's economy.