Stabilising Growth But With Challenges Ahead

Economic Research	19 September 2016
China
Economic Outlook
Stabilising Growth But With Challenges Ahead China’s economic conditions will stabilise in the near term amid government’s series of support. Speed-up of approvals for infrastructure projects and growing state-driven investment contributed the most for the economic stabilisation in Aug 2016. However, we still believe the risk for China’s economic growth is on the downside, given 1) short-term pains from deepening supply-side reform, 2) sluggish recovery in private sectors, 3) more tightening measures in property market, and 4) mounting external uncertainties. As such, we believe China’s economy is likely to stabilise at 6.5-6.6% YoY in 2H16, but will further edge down to 6.4% YoY in 2017. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 27 Jun: Economy Continues On A Slowing Growth Path 09 Mar: Finding The Way In The Fog 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