Goldman's O'Neill Bullish on China, Says Market Missing Picture
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Jim O'Neill, Chairman of Goldman Sachs (NYSE: GS) Asset Management, said that China is doing a better job managing inflation than most market participants believe.
Further, O'Neill also sees China doing a great job balancing toward domestic consumption.
O'Neill's comments may come with some speculation. China's CPI increased 5.5 percent in May, which was the fastest pace in nearly three years. However, O'Neill, who coined the term BRIC (Brazil, Russia, India, and China), says that the government has been taking measures to curb inflation for over a year now.
O'Neill believes the rapid rise in China's CPI should cool off to 4 percent by the end of the year.
Further, O'Neill cites figures from the Chinese Academy of Social Sciences in saying that domestic consumption should double in the next five years.
Speaking to Dow Jones, he said, "The Chinese trade surplus comes to 1% of the country's gross domestic product so far this year, compared to more than 10% prior to the financial crisis."
Further, O'Neill also sees China doing a great job balancing toward domestic consumption.
O'Neill's comments may come with some speculation. China's CPI increased 5.5 percent in May, which was the fastest pace in nearly three years. However, O'Neill, who coined the term BRIC (Brazil, Russia, India, and China), says that the government has been taking measures to curb inflation for over a year now.
O'Neill believes the rapid rise in China's CPI should cool off to 4 percent by the end of the year.
Further, O'Neill cites figures from the Chinese Academy of Social Sciences in saying that domestic consumption should double in the next five years.
Speaking to Dow Jones, he said, "The Chinese trade surplus comes to 1% of the country's gross domestic product so far this year, compared to more than 10% prior to the financial crisis."
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