China watchers see soft landing for economy in 2015
HONG KONG (MarketWatch) For years now, China has been haunted by the spectre of a possible hard landing, with fears including a financial collapse and bad-debt crisis, crippling deflation and sharp drop in economic growth that could lead to political instability.
But listen to some of the financial communitys top China-focused analysts, and the situation doesnt sound so dire.
Yes, the governments efforts to balance reform with growth may exert a downward pressure, but it will be a soft landing, a moderation rather than an outright contraction, with prices to remain stable, or so say the analysts.
Société Générale economist Wei Yao is one such voice predicting a manageable deceleration, describing it as the new norm, with slower economic growth but of better quality.
While she sees reforms as weakening the governments long-standing backstop for the economy and markets, thus adding downside risk, she also sees Beijing as willing to mitigate the pain of such reform via stimulus.
http://www.marketwatch.com/story/china-watchers-see-soft-landing-for-economy-in-2015-2014-12-30