RHB | China | Finding The Way In The Fog

Economic Research	9 March 2016
China
Economic Outlook
Finding The Way In The Fog China’s economic growth is likely to continue its softening trend in the coming quarters, in our view, given downside pressure from structural problems. We believe traditional industrial sectors will remain as major drags for the economic expansion. The government will stay with supply-side structural reform in the medium term, by closing excess capacity, controlling leveraging growth in financial sectors and lowering inventory levels in property market in low-tier cities. Meanwhile, the government will enhance the scale to clear up ‘zombie’ industries, to further improve efficiency of resource allocation. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 14 Dec: No Easy Way Ahead 09 Dec: Better Inflation Numbers, No Change Of Easing Stance 08 Dec: Mounting Uncertainty For Export Recovery 01Dec: Weakening Industrial Sectors 09 Nov: No Sign of Improvement 04 Nov: A Long-term Blueprint