Stabilising Economic Conditions Amid Supports From Government

Economic Research	13 September 2016
China
Economic Highlights
Stabilising Economic Conditions Amid Supports From Government China’s economic data came in higher than market expectation, indicating the country’s economic conditions may stabilise in the near term. However, we still believe the risk is on the downside amid weak private investment, more tightening measures in property market and ongoing supply-side reform. Looking ahead, investment growth is likely to stay weak, as we do not believe there will be any fundamental improvement for private investment in the near term. The only support could still be state-led investment on infrastructure projects. In a longer term, we remain cautious for growth from property market and industrial sectors. But the government will likely make more efforts on targeted fiscal stimulus and introduce more PPP projects to help the real economy. In the meantime, monetary authority will remain relatively quiet given calls to curb asset bubbles. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 09 Sep: CPI Could Have Already Dipped In Aug 2016 08 Sep: China’s Trade Terms Stabilise Amid Low-Base Effect 02 Sep: Mild Inflation, But Investment Growth Remains A Big Concern 01 Sep: Industrial Sector Improved, But Downside Risk Remains 09 Aug: Mild Inflation, But No Further Easing Of Monetary Policy Envisaged 08 Aug: Another Set of Weak Trade Data With No Fundamental Improvement