George R Hoguet, General Manager and global investment strategist of State Street Global Advisors said that China economy growth in the next half year will be almost the same as the first one's, maintain 7.5%. China economy has achieved a soft landing.
Hoguet said in press conference that through fiscal policy and monetary policy, China has avioded the crisis of hard landing. However, under the circumstances of global economy's slowdown, China cannot immune from it. Under the leadership of a new government, China has to reformulate the strategy of economy growth to keep per capita income growing.
He predicted that China would maintain a 7% growth in the next 10 years and by 2025, China would become the largest economic entity, surpass America.
Hoguet said that investors can participate in China investment directly or indirectly. He believed A share market had a reasonable valuation and health-care, IT as well as real estate industry would be good. In the future, China would play an important role in global market and have a great impact on international asset prices.
According to Hoguet's analysis, China's rapid economic growth benefited from high savings, FDI and urbanization. But without demographic dividend, China should actively search for adjustment of economic structure and avoid middle-income trap.
Written by Nicolas Yang
