Partial economic indicators continue to highlight softening trends in China, evident since the latter part of 2013. These trends remain in line with our expectations, and as such, our forecasts for Chinese economic growth are unchanged at 7.3% in 2014 (before slowing to 7% in 2015).

Recent commentary by both China’s President and the Governor of the People’s Bank of China appears to indicate an acceptance of slower growth trends – with Governor Zhou Xiaochuan commenting that the Government would ‘fine tune’ its policy to counter economic cycles but not use any large-scale stimulus to boost the economy (China Daily).

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China Economic Update – 13 May 2014 (PDF,103KB)