Morgan Stanley China chief economist Xing Ziqiang said recent rate increases have led his team to revise forecasts to expect one hike in December this year and another in March next year. He said they will closely monitor how rate moves could affect global liquidity. Conversations with overseas investors show stronger demand for China’s tech sector and other areas with improving cyclical momentum; he cautioned that such industrial waves raise productivity but can disrupt employment and incomes,

Morgan Stanley China chief economist Xing Ziqiang said recent rate increases have led his team to revise forecasts to expect one hike in December this year and another in March next year. He said they will closely monitor how rate moves could affect global liquidity. Conversations with overseas investors show stronger demand for China’s tech sector and other areas with improving cyclical momentum; he cautioned that such industrial waves raise productivity but can disrupt employment and incomes, requiring preparation to manage those shocks.