2016 is already half gone and the major economic data for the second quarter will be released soon.

Although the market generally remains positive that the GDP growth for the first half of the year will maintain at around 6.7%, many are still worried that the economic growth will continue to slow down during the second half with some believe that the central government will relax the monetary policy.

The research team at ANBOUND Consulting is of the view that China is now in the transition phase wherein the central government has shifted its economic policy direction from 'stabilizing the economic growth' to ‘promoting reforms’.

In terms of the economic policy for the second half of the year, it is expected that on the one hand, the central government will make use of both fiscal and monetary policy to ensure economic growth while on the other hand, the central government will stabilize market expectation and create a better condition for deepening reforms by cutting overcapacity as well as encouraging more private investments.