Challenge

Via Bloomberg

"China Passing Growth Peak Insufficient to Tame Prices "

June 9 (Bloomberg) -- China’s policy makers may see evidence this week that economic growth peaked in the first quarter, strengthening their opposition to higher interest rates even as inflation accelerates.

Consumer prices jumped 3 percent, hitting the government’s targeted full-year ceiling, after a 2.8 percent increase in April, according to the median of 32 estimates in a Bloomberg News survey before the June 11 release. In contrast, lending, investment and industrial output figures due this week may show a slower pace of gains, according to survey estimates.

A moderation in economic growth from 11.9 percent in the first quarter may help to avert the risk of a boom in the world’s third-biggest economy being followed by a bust. The Shanghai Composite Index has fallen 23 percent this year, Asia’s worst performer, partly on concern that the government will tighten policy excessively.

China is facing a series problems from both internal and external: the equity bubbles, the currency conflict, the opening of the financial market etc. Would expect to see the further actions.

Liz Liu

SA

Analyze Capital LLC