Exports to China grow, reaching a growth rate in May, up 48.5% year on year. The Chinese government aware of the risks of inflation has decided to take action to eradicate it. For example, wages increase by only 7-8% this year compared with a much higher average level of 15%. Government policy is therefore good for consumers and consumption, as it contributes to the growth of domestic demand. According to Allianz Global Investors, inflation will be high risk, because we expect a significant increase in productivity. Almost all sectors of China’s economy is characterized by a large surplus production capacity, which restrict the growth of margins and prices.

In the context of rising real estate prices in China, the government was right to look at the speculators who want to buy the second, third or even fourth home in big cities like Beijing or Shanghai – says Guido Stiel, an expert in Chinese securities fund, Allianz RCM Bric Stars Fund . – In the second and third group of cities in terms of volume we see the opposite trend. Demand up mostly of first home buyers, due to internal migration, which creates demand for homes. Prices in those cities are moderate and do not become the first home buyers.

There has been concern about inflation in India, which, however, began to decrease. Says Allianz Global Investors, before the end of the year will witness a single or double, a slight increase in interest rates by the central bank of India. GDP growth in India will oscillate at the level of 7-8%.