After a summer of turmoil in the stock and foreign exchange markets, China’s financial and business communities are on edge.
Capital outflows and a slowing economy add to the unease. The US Federal Reserve’s impending interest rate rise gives investors and companies another headwind to contend with.
The People’s Bank of China’s decision in mid-August to let the renminbi depreciate caught the market by surprise, but among the most plausible theories to explain the move is that it was designed to pre-empt the Fed’s rate rise.
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