Date
21 August 2017

China faces risk of sharp slowdown, Bank of Singapore says

China faces the risk of a sharp slowdown in its economy as the nation struggles to rebalance its growth model after excessive investments in the past, Richard Jerram, chief economist of Bank of Singapore, told reporters in Hong Kong Thursday.

Credit boom has underpinned double-digit growth in past decade. However, as the government tries to write off bad debts, there will be a substantial drop in investment, he said, adding that domestic consumption is unlikely to fill in that gap anytime soon.

Developed markets such as the US and Japan could outperform emerging markets this year as their economies improve. US equity markets could gain 10 percent this year, albeit with a lot of volatility, according to Hou Wey Fook, chief investment officer at Bank of Singapore.

– Contact HKEJ at [email protected]

RC

 

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