Reform Can Bring More Confidence to the Market than Stimulation Policies
ANBOUND
During his visit in England, Premier Li Keqiang said that China's economic growth rate wouldn't fall below 7.5%. However, in the beginning of this year, the economic growth target was about 7.5%. The market can’t help wondering about its fall to 7.5%. ANBOUND’s contributing economist Zhong Wei thinks it seems that Chinese economy has followed the old pattern for a year and a half. There is no big difference between current policies of the State Council and the former policies which were strongly criticized. There are lots of unimplemented documents but few reforms, just like before. If this situation continues, people’s confidence in future Chinese economy might be undermined further. Now reform can make the market more confident than stimulation policies.