It is not likely that Chinese industrial economy will experience hard landing regardless of the sluggish investment, Gan Jie, a financial professor, said Friday.
Speaking at a luncheon co-organized by China's Hong Kong General Chamber of Commerce and Cheung Kong Graduate School of Business (CKGSB) on Friday, Gan, a professor from the CKGSB, released a survey she conducted recently, showing that the Chinese industry has been facing a difficult time especially when production and labor costs stood high until the fourth quarter of 2014.
However, the chance of having a hard landing is low since the severity of excess capacity has been stabilized, in addition to the flattened costs, and financing is not a problem for Chinese industrial corporations.
Gan said the main problems are structural and fundamental and one should not expect for a quick recovery.
She called for fundamental and systematic reform by increasing domestic demand and enhancing technological innovation.
The financial expert also suggested that easing monetary policy would not boost the industrial economy, but could help buying time for resolving the problems.
In regard of the economic outlook, the survey revealed that more than 60 percent of the interviewed corporations said they are cautiously optimistic, while for the remaining 36 percent, half of them are optimistic, the other half pessimistic.
Gan said, for the long term, the prospect and institutional environment are not bad.
