Plunging exports to EU shaves China GDP by 1%

The European Union (EU) is the most important market for Chinese exports, however, even if exports to EU plunge by 20 percent, it will affect China's GDP by only one percent, according to Credit Suisse, ET Net News reported.

The house said Chinese exports to the EU are having a much higher correlation with EU's GDP than the EUR/RMB exchange rate.

Credit Suisse believes banks, telecom, consumer, property and most capital goods companies in China are largely insulated from the problems in Europe.

But sectors like oil, non-ferrous metals, container shipping, container ports, solar manufacturers and selected capital goods producers will see the largest negative impact from a slowdown in Europe and Euro depreciation.
(Source:www.cargonewsasia.com)