Back
31 Mar 2015
China: more measures to attain the 7% growth target – ING
FXStreet (Barcelona) - Tim Condon, Head of Research & Chief Economist at ING, believes that hitting the 7% growth target requires reducing the drag from residential property, and hence expects more micro and macro policy stimulus in China.
Key Quotes
“Two developments could sustain the stock market rally PBOC Governor Zhou triggered yesterday. The China Securities Regulatory Commission liberalized access to the Hong Kong market via the Shanghai-Hong Kong stock connect to investors without a Qualified Domestic Institutional Investor certificate.”
“And the PBoC cut the downpayment for second homes to 40% from 60% in most cities. Press reports had suggested a cut to 50% was imminent.”
“Hitting the 7% GDP growth target for 2015 requires reducing the drag from residential property. We think the easing of macroprudential cooling measures and their transformation into boosting measures will continue.”
“We also think more macro policy stimulus will be needed and we reiterate our view that the PBoC will ease by a cumulative 75bp by yearend (Bloomberg consensus 25bp).”
Key Quotes
“Two developments could sustain the stock market rally PBOC Governor Zhou triggered yesterday. The China Securities Regulatory Commission liberalized access to the Hong Kong market via the Shanghai-Hong Kong stock connect to investors without a Qualified Domestic Institutional Investor certificate.”
“And the PBoC cut the downpayment for second homes to 40% from 60% in most cities. Press reports had suggested a cut to 50% was imminent.”
“Hitting the 7% GDP growth target for 2015 requires reducing the drag from residential property. We think the easing of macroprudential cooling measures and their transformation into boosting measures will continue.”
“We also think more macro policy stimulus will be needed and we reiterate our view that the PBoC will ease by a cumulative 75bp by yearend (Bloomberg consensus 25bp).”