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China's financial influence grows ever stronger
Weekly investor research
23 March 2015
China is pushing hard for an ever more prominent role in the global financial system. The support for its AIIB initiative directly
challenges the old Bretton Woods institutions and rightly focuses on the single most important constraint to continued Emerging
Markets (EM) expansion – developing domestic infrastructure which has failed to keep pace with private sector expansion.
China has also taken a significant step by allowing local governments to convert or issue RMB 1.5bn of debt and become a key
element of the country’s debt markets. We also review Brazilian, Argentinean and Venezuelan politics and Russia’s economy,
which is now adjusting to the policy changes of a few months ago. In the global section we look at slowing US growth and how
the FOMC meeting changed little in any meaningful sense and leaves the US in much the same position of high debts and
slower growth and in no hurry to hike fast.