Financial institutions, including UK’s Standard Chartered Bank, Commerzbank of Germany, and Hang Seng Bank of Hong Kong, raised expectations for China’s economic growth in their reports released in September. According to the reports, better performance of China’s August economic indicators showed that policies to maintain stable growth are taking effect, and power to drive the economy is improving.
-Standard Chartered Bank: GDP in the second half of the year is expected to grow 6.9 percent, and annual economic growth to reach 6.8 percent.
According to Ding Shuang, head of Greater China economic research at Standard Chartered, economic performance in August was better than in July. Import and export data beat expectations, industrial added value maintained a steady rise, investment statistics from the month also got better, which mean economic growth remained stable and risks of a hard landing are relatively low, Ding said.
Judging from the support of economic growth, consumption as China’s economic stabilizer is playing a more important role. In the second half of the year, net exports will also make contributions to economic growth. Meanwhile, growth of the service industry and industrial added value will remain stable and positive fiscal policy will continue to take effect.
-Barclays Capital: China’s economic indicators generally getting better, raising expectations of GDP growth rate for the second half of the year.
China’s economic conditions in August turned out better than the previous month, with all indicators improving, according to a report published by Chang Jian, chief China economist at Barclays Capital, and Zhou Yingke, assistant vice president at Barclays Investment Bank.
Industrial output and retail sales continue to get better, fixed asset investment growth starts to stabilize, PMI and import data are better than expected. Overall economic growth momentum from the second quarter to the fourth has been improving markedly.