BlackRock's Fink says China reforms should moderate boom, bust
[SINGAPORE] China's financial reforms should help moderate the nation's boom and bust cycles, BlackRock Chairman Laurence D. Fink said at an investor conference in Singapore.
The Asian nation's leadership is doing a good job in transitioning the economy and its slowdown shouldn't surprise investors, said Mr Fink from BlackRock, which is the world's biggest money manager with US$4.77 trillion in assets.
China is in a "long transition" and the slowing of the world's second-biggest economy is a "positive," he said at the 2015 Credit Suisse Megatrends conference.
Speaking about the US economy, Mr Fink said the Federal Reserve is "reluctant" to start the process of normalising monetary policy. The "risks are enormous," and central banks understand that, he said.
Mr Fink said in a telephone interview on April 16 that pressure from a stronger dollar will ease because the currency's strength won't last and the rally was premised on a view the Fed will tighten its monetary policy soon.
Disappointing payrolls data were among weaker-than-forecast economic reports that have damped speculation the central bank will increase borrowing costs in June, making September more likely, according to economists surveyed by Bloomberg.
BlackRock reported last week that first-quarter profit rose 8.7 per cent after investors added new money to its funds. The company attracted more than US$70 billion in long-term new money, more than half of which went into index-tracking products that generally charge lower fees.
BLOOMBERG
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