China's consumers to save more, spend less through to the second half of the year

<p>Global head of research at Standard Chartered Bank's global head of research was interviewed by CNBC on China, on the consumer:</p><ul><li>consumer confidence is soft </li><li>part of that is because of a softer labor market and softer incomes </li><li>but also with real estate prices down quite a bit, equity prices down and China's interest rates all below 3% now the vehicle or the Avenue for accumulating savings I think looks impaired</li><li>even with the liquidity that's been added to the system I think people will be inclined to save that rather than spend it</li></ul><p>On markets in China:</p><ul><li>we are
seeing net outflows but there are asset managers and strategic
investors around the world that are
still putting money into China</li><li>I would
acknowledge that the net of flows is out but it's not all one-sided</li></ul><p>—</p><p>Not a resoundingly positive appraisal from Stan Chart. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.