Equities Worldwide: “HCS Worldwide” – (China May Ease Lending)

PR Log (Press Release) – Oct 23, 2008 – “HCS Worldwide” believe that China may ease restrictions on mortgages and business loans rather than lower interest rates.

The European-based capital management firm is thought to expect a global slowdown to dampen economic growth in the country to below 9 percent.

Sources close to “HCS Worldwide” say that although China’s inflation rate has fallen recently, there isn’t enough headroom to cut interest rates.

China may also hike export tax rebates for some manufacturers as it has done recently for textile producers according to one of the “HCS Worldwide” sources.

China remains the world’s fastest-growing major economy but also relies heavily upon exports to the US and Europe, both of which are struggling to contain the effects of the year-old credit crisis.

“HCS Worldwide” believe that the issues facing western economies have featured heavily in debates among industry commentators when assessing the outlook for China going forward.