Damian Klassan from Wilson HTM has provided a comprehensive summary of the issues facing China and whether it can sustain current growth through its...

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Damian Klassan from Wilson HTM has provided a comprehensive summary of the issues facing China and whether it can sustain current growth through its rebalancing, or whether it will face a step change in growth downwards. In summarising three main issues, he notes the importance of political will over pressure from vested interests, especially in a country where governmental transparency is not a strong point. Furthermore, he states that growth cannot fall too low, as the confidence in future investment lies with growth and the breaking of that cycle could precipitate a large losses. Lastly, given the stimulus post-GFC, he notes the reduced scope for China to use stimulus to support growth given the higher debt levels the government now carries. (VIEW LINK)

economy China

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