Last year, ANBOUND's chief researcher, Chan Kung predicts that 2016 is not about who is doing better but rather it is about comparing who is doing worse.

The development in the first half of this year has confirmed Chan Kung’s prediction.

Against such backdrop, this gives China more time and space to adjust its economy.

If we were to review the views expressed by the central government in relation to the structural reform on the supply-side as well as the trend of L-shaped economy from this perspective, we should be able to gain insight into how the decision makers will deal with this situation.

It takes confidences to reverse the situation, particularly when the situation is a difficult one. The ability to judge the situation correctly has boosted the decision makers’ confidence and this seems to make China even calmer when making decisions.