China Needs Bigger Rate Increases, Too Late for Yuan, CLSA's Walker Says

(Bloomberg) -- China needs to ``shock'' the economy
with more interest-rate increases because it's too late to use a
stronger yuan to cool growth, said Jim Walker, chief economist
at CLSA Asia-Pacific Markets.

The Chinese government is too concerned about derailing
export growth as the U.S. economy slows to let the yuan rise
faster, Hong Kong-based Walker said. Higher borrowing costs
would prevent the flood of cheap credit from spurring a stock-
market bubble and excessive investment.


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