While China's slowdown in economic growth has weighed on emerging markets for several years, many observers have been overstating the risk of a hard landing.
The Chinese economy remains on a fast-growth trajectory: equities are on the rise and the economy is expected to grow by 6.5% by year-end. Although the challenges facing China should not be underplayed, Chinese growth will remain on a steady course. While rising debt should not be overlooked, it is a local, as opposed to a foreign deficit, and therefore unlikely to destabilise the entire economy. China's high foreign currency reserves, relatively prudent fiscal policy, low and stable inflation and controlled interest rates, plus its high positive trade account, all bode well for ...
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