RHB | China | Setting A Slower Growth Target

Economic Research	24 February 2016
China
Economic Highlights
Setting A Slower Growth Target China will hold its 4th session of the 12th National People’s Congress in Mar 2016. We believe major focus will be on a slower economic growth target and detailed goals for the 13th five-year plan. The government will likely put more emphasis on supply-side management to reduce excess capacity, control leveraging expansion pace and lower inventory in property market in low-tier cities. Given the structural problem, the government will have to stay with monetary easing and targeted fiscal stimulus to cushion the economic slowdown. However, the central bank will likely implement certain measures to control new credits from growing too fast and guide funds to flow into those industries being supported by the government. Also, we expect more supports to come from enlarged fiscal deficits and policy banks. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 02 Feb: Lower-than-expected PMI Shows Further Downside In Industries 19 Jan: A Slower Boat But Not Unexpected 13 Jan: Still A Tough Recovery Ahead For China’s Exports 11 Jan: CPI Edged Up, But Deflationary Pressure Remained Among Industries 04 Jan: Marginal Improvement, But Still in Contractionary Zone 14 Dec: Pause For Breath