Reforms May Pull China Growth Down To 7%

China will cut its growth target to 7 percent next year in a sign of the government’s determination to push through structural reforms and steer the economy on to a more sustainable path, one of the country’s top investment banks has predicted.

With Communist party leaders gathered in Beijing now for a meeting that will set China’s policy direction for the coming decade, investors and companies have been looking for clues about their strategic thinking.

A lowering of the country’s growth target – although unlikely to be announced until the annual Chinese parliament in March – would be an important distillation of the government’s plans.China has consistently exceeded its annual growth targets in practice, but a cut would still be an indication of Beijing’s willingness to tolerate slower growth in the interest of addressing risks from rising debt levels to soaring property prices.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu