China's Policy Tightening Won't Impact Growth Beyond Short Term: Goldman Sachs

The recent policy tightening initiatives from China’s officials through the reining in of housing prices, will impact the country’s growth only for the short term, as policymakers prepare to prioritize stability and growth ahead of leadership changes next year, states analysts at Goldman Sachs. Andrew Tilton argues in his December 14 research note titled “Asia Views: Reflation, depreciation, and demonetization” that Japan turns out to be the biggest beneficiary of the reflation trade. China’s infrastructure spending clocks 15% to 20% expansion Tilton highlights that thanks to better PMIs in the larger part of Asia and the world, the economic trend points…