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Pace of Olympic investment no barrier to Chinese growth

Posted on Tuesday, August 19 by Registered CommenterRichard Edwards in | CommentsPost a Comment

Investors may have questioned whether the frantic pace of the Beijing Olympics could proceed a slowdown in China’s economy, but at least one leading figure believes that such claims are wide of the mark.

In fact, speaking in today’s Financial Times, Jing Ulrich, China Equities at JP Morgan, reckons that the amount of money ploughed into China’s infrastructure to ensure that the Greatest Show on Earth runs smoothly, could even act as a catalyst for greater growth in the country.

“China’s economy is indeed slowing, but the timing is largely coincidental,” Ulrich says. “Buoyant domestic demand and an infrastructure boom suggest that the slowdown will be less severe than Olympics pessimists predict.”

China has already proved many doubters wrong by hosting one of the smoothest run and entertaining Olympics in modern times, now it looks as though the surprises might just keep coming.

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