Less growth and more opportunity - but no hard landing for China yet

Andrew Swan, manager of the BlackRock Asia fund, analyses the prospects for Chinese markets as the country deals with the consequences of its new reform-led agenda

Chinese Premier Li Keqiang’s comments in March on a new economic ‘normal’ in China revived debate on exactly how far his politburo’s reforms had progressed. Despite ongoing scepticism, it is fair to say reform has advanced on a number of fronts and has reduced the risk premium overhanging China.  The People’s Bank of China has cut interest rates twice in four months; demonstrating policymakers are willing to take steps to achieve the kind of stable growth that will allow the government to work on ensuring employment and social stability. Without it, it would be difficult to advance nece...