China: A moderate slowdown in 2017 – Danske Bank

Chief Analyst, Allan von Mehren at Danske Bank, suggests that the Chinese activity is currently strong due to the strong housing following policy easing, significant infrastructure boost and improving export growth.

Key Quotes

“However, we look for a slowdown in 2017.

− Monetary policy is de facto tightening leading to a slowdown in housing.

− We expect the infrastructure boost to fade soon.”

“We look for only a moderate slowdown.

− Exports are set to serve as a buffer due to weaker a CNY and decent global growth.

− Policy would be eased if necessary ahead of the 19th National Congress of the Communist Party of China in autumn 2017.”