The United States Federal Reserve is likely to begin tapering its asset-buying program in March next year, but it will have little impact on China’s economy, a top economist at JPMorgan Chase said Tuesday.
JPMorgan chief China economist Zhu Haibin said the US government will start tapering when its economy is recovering well and demand for exports grows.
Zhu also said the risk to China’s market is lower than that to other emerging economies because China does not have a fully open capital account.
But he said the renminbi could face pressure if currencies in other emerging economies fall due to the US quantitative easing exit.
JPMorgan expects that China’s gross domestic product will grow 7.4 percent next year, and Beijing will set the target growth rate at 7 percent.
Zhu said the best prospects next year are in the environmental, health care and e-commerce sectors.
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