International Monetary Fund (IMF) released its latest report, World Economic Outlook on April 12.

The IMF lowered its forecast on global economic growth to 1.9% and 2.0% for 2016 and 2017 respectively but nudged China's growth forecast for 2016 and 2017slightly higher.

ANBOUND's research team expects a relatively favorable environment for China’s economy to take shape because: -

(i)The West might be fully exposed to turmoil in its economy and financial market;

(ii)China might introduce more favorable policies in the second half of year;

(iii)The investment in China might increase substantially.

The aforementioned factors highlight the relative value of China and this might create short-term opportunities for China’s economy and capital market, it is possible that the economic growth in China this year might be higher than the expected 6.5%.