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Exploring China and Spain
Exploring China and Spain

Exploring China and Spain


This month, our experts, Christine Peltier and Frédérique Cerisier from BNP Paribas Economic Research Department, examine China and Spain’s economic perspectives 

China: concerns

Christine Peltier, BNP Paribas Economic Research Department

Beijing is worried about the economic slowdown and its effects on the financial health of Chinese corporates. Domestic demand growth is weakening and the external environment is worsening, notably because of protectionist measures taken by the US. The authorities are adjusting their economic policy accordingly. They have slightly loosened monetary conditions, without changing their objective of cleaning up the financial sector and state-owned enterprises. They have also let the yuan lose 5% against the dollar in the last three months. It is now essential for the yuan’s depreciation to remain under control, in order to avoid any dangerous capital outflows and further pressure on the currency, as seen in 2015-2016.

To read the full analysis: here

Spain: growth on auto-pilot 

Frédérique Cerisier, BNP Paribas Economic Research Department

The outlook is good. Although economic growth is no longer accelerating, it remains strong and is pushing down unemployment. The only cloud on the horizon is the slow pace of fiscal consolidation. That is less a deliberate policy than the result of difficulties experienced by minority governments since the end of 2016. Pedro Sanchez’s government was brought to power by a diverse majority, and could have at least as much trouble as its predecessor in implementing its policies. In the circumstances, we would not be so surprised if an early general election takes place before the scheduled date in 2020..

To read the full analysis: here

Insights from BNP Paribas Securities Services

Exploring China

The process of opening China’s markets to allow cross-border capital flows has been carefully controlled but the launch of landmark bilateral schemes with Hong Kong in recent years suggests China is now prepared to take much larger strides towards allowing cross-border investment flows.

Click here to read the full article

Exploring Spain

In September 2017, the full T2S migration  was finally completed thanks to the fifth migration wave, which brought the Spanish CSD and the Baltics into the game. This wave brings to T2S the remaining 15% of volumes that were settling outside the pan-European platform. With volumes lower than the previous wave, the stakes may seem limited but this final wave was much higher in complexity.

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