China market guru Andy Rothman believes mainland authorities will avoid any new large-scale stimulus despite the weaker economic growth.
Rothman, who has lived in China for 25 years and is now an investment strategist at Matthews Asia, noted that the country has shifted its export-oriented economy into one that is led by domestic consumption, the Hong Kong Economic Journal reported.
Top leaders, meanwhile, are playing down the importance of gross domestic product growth as a barometer of the nation’s well-being, he said.
Instead, more emphases is being put on wage growth, inflation, living standards and job security even as the economy has slowed to 7 percent in the first quarter from a year ago, Rothman noted.
Manufacturers, meanwhile, will be forced to lift production efficiency and value addition through the supply chain to offset negative effects of the appreciating renminbi.
Rothman forecasts that China’s economic growth will be in the 6.5 to 7 percent range this year, supported by robust household consumption growth.
Translation by Vey Wong
– Contact us at [email protected]