Market Must Prepare for China's Economic Slowdown in 2018
ANBOUND
Anbound
previously predicted that China's economy in 2018 will be in low-key; this was
considered by some as 'too pessimistic'. In the first quarter, China's economic
growth rate was 6.8%, which seems to be optimistic; however a large part of the
economic statistics in April does not appear to be that optimistic; except for
industrial added value, we see that investment, consumption, exports and other statistics
have all declined significantly, the growth rate of fixed asset investment has
been the lowest since 1999, and the total retail sales of consumer goods growth
rate is also the lowest within the year. The lower price index also shows that
economic activity has decreased. Anbound's observation of many microeconomic
phenomena also confirms the weakening in economic statistics. If
macroeconomic policies are not adjusted, the economic slowdown in 2018 will be
intensified.