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Economic
Research
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18 July 2016
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China
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Economic
Highlights
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China’s GDP remained
unchanged at 6.7% YoY in 2Q16, but we see pressure coming from falling
private investment and weakening industrial sectors. Only state-led
investment and property-related sectors somehow provided supports to the
economy in 1H16. Looking ahead, we expect a slower growth in the coming
quarters, given pains from supply-side reform, challenges for private sector,
moderating property investment, high funding cost and subdued global demand.
Policymakers will use enlarged fiscal deficit and direct financial support by
policy banks to ensure sufficient funds for its targeted fiscal stimulus
packages; while the central bank will likely stick to “open market operations
+ SLF + MLF” mode to adjust liquidity levels, rather than a universal RRR cut
in the near term.
Economist: Zhang Fan|
+8621
6288 9611 ext 105
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To access our recent reports please
click on the links below:
18
July: Downside
Pressure Persists
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Tuesday, August 2, 2016
More Targeted Stimulus Expected To Help Weakening Industrial Sector
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