China: Economy stabilized on property rally - Commerzbank

Analyst, Zhou Hao at Commerzbank, notes that the China’s economy stabilized somewhat in Q1 2016, gaining 6.7% y/y versus 6.8% in the previous quarter, due to proactive policy easing and property market rally.

Key Quotes

“However, we believe that the stabilization is a short-term phenomenon, as property policy has been tightened in the major cities. In the meantime, the monetary policy has become less aggressive as CPI inflation unexpectedly picks up. We maintain our below consensus GDP forecast for 2016 at 6.3% for now.”