For long, geopolitics seemed to have started playing an important role in deciding the destiny of global financial markets. 2015 has seen contrasting developments, where nearly every market affected the other, irrespective of how much contribution one made to the other’s GDP. The reason could be that globally financial markets remain highly interconnected and if not through investments then through trade, the influence remained inevitable. This article highlights four important economies that could make a difference to global financial markets.
All posts in China
China’s Free Market Practices through Devaluation
By devaluing its own currency, China has tried to address its issues due to financial distress. Not many have taken this surprise move by China in good spirits. While China might be trying to fix its own domestic growth, it could trigger currency wars amongst nations that are trying to compete with each other in international trade.
The Experimental Reforms in China’s Economy
China’s leaders now aim to transform China into one of the world’s leading industrial powers by 2045 and for this, a new business model will be designed. By doing this, it aims to reduce and eventually overcome the country’s dependence on cheap manufacturing and instead focus on advanced industrial goods for markets. Not only this, China has for long been building knowledge-based economy, driven purely by innovation and domestic consumption. But its real estate sector still consists of ghost towns and dozens of unleased commercial spaces.
Will China-led bank (AIIB) Test The Shift of Economic Powers?
The creation of AIIB, China has opened its closed doors to many countries. In committing to contribute up to 50% of the AIIB capital, it will be taking the lead in assisting the development of other Asian countries. There will be a lot of rising challenges in the development of the bank but this could be a great opportunity for China to prove itself as a global leader.