China
Why We Think Concerns on Capital Outflow Are Overdone 4
Policy Easing Limits the Downside Risks to Growth 9
Asia Insight: Informal Lending – Low Risk to the Financial
Sector; Limited Impact on the Real Economy 14

Hong Kong
HK$ Monetary Conditions and CNH Monitor 31
F12/13 Budget – Limited New Initiatives, More Handouts 40
Growth Moderating but No Double Dip, Yet 46

Taiwan
4Q GDP Weaker than Expected; a Technical Recession is
Happening