The economic target, set by the government work report in the third session of the 12th National People's Congress(NPC), is a cautiously contracted objective which is fundamentally consistent with market expectations and China’s new normal. ANBOUND research team thinks that given the considerable deflation pressure, it might be difficult for China to achieve the CPI and M2 objectives. Anti-deflation will be the main theme of the country’s macro control throughout the year and monetary policies are hopefully to have a further relaxation.