China: Searching For a New Equilibrium

Conflicting headlines and market turmoil leave questions explored in this Global Macro Shifts.

Templeton Global Macro®

China has cemented itself as an economic powerhouse fueled by rapid growth and social development. Already the world's second-largest economy, the nation's influence is undeniable. But conflicting headlines and recent market turmoil are leaving investors with big questions about the future. Dr. Michael Hasenstab, Chief Investment Officer, Templeton Global Macro offers an in-depth look at the challenges and opportunities China faces as it continues to grow.

FEATURED VIDEO

The Rise of the Private Sector

The government has long played an influential role in China's economic rise. But Dr. Hasenstab says key reforms and innovation have the private sector becoming increasingly more important.

In this edition of Global Macro Shifts

Global Environment

The US, Eurozone and Japan are each telling very different economic stories. Dr. Michael Hasenstab breaks down the latest data and offers insights about where these regions are headed.

Focus on China

What makes the world's second largest economy tick? Dr. Michael Hasenstab delivers timely insights to help you put the news headlines about China into context.

GLOBAL ENVIRONMENT

Divergent Monetary Policy

The US Economy is showing signs of picking up steam; Greece continues to cloud the recovery in the Eurozone; and Japan is making progress on reforms, but is it enough to boost growth? Dr. Michael Hasenstab examines these developments and the divergent roles of monetary policy in each region.

For more on Divergent Monetary Policy, click here.

Focus on China

China - Searching for a New Equilibrium

China has reached a crucial stage in its economic evolution. Dr. Michael Hasenstab says while the country's transformation poses challenges, there are still reasons for optimism about China's prospects.

Three Risks

China's economic transformation doesn't come without challenges. Dr. Michael Hasenstab takes a closer look at the role of monetary policy, potential debt risks and the impact of the recent equity market turmoil.

Demographic Shifts

China's population has long had a profound impact on the country's story. Dr. Michael Hasenstab examines the evolution of China's labor market and the possibility of falling into a middle-income trap.

New Engines of Growth

China's traditional growth sectors have slowed. Find out where new opportunities are emerging to pave the way for a rebalancing in the economy. Dr. Michael Hasenstab takes a closer look at this shift and the new growth engines on the rise.

 

Contributors

Michael Hasenstab, Ph.D Portfolio Manager,
Chief Investment Officer,
Templeton Global Macro ®

Sonal Desai, Ph.D. Portfolio Manager,
Director of Research,
Templeton Global Macro ®

Calvin Ho, Ph.D. Deputy Director of Research,
Templeton Global Macro ®

Hyung C. Shin, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Kang Tan, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Diego Valderrama, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Attila Korpos, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

 

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in an investment portfolio adjust to a rise in interest rates, the value of the portfolio may decline. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets' smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.