China's GDP puts country on sustainable path

China's Q3 GDP figures released on Thursday show the country's economy is on a sustainable path, says J.P. Morgan Asset Management's Geoff Lewis, who believes wide scale fiscal tightening is still far off.

The country's real GDP grew by 8.9% on an annual basis and up from 7.9% in the second quarter. "In quarter-on-quarter terms growth thankfully lost momentum, decelerating to a much more sustainable trend that Beijing will be more than comfortable with," says Lewis. "To overwork a phrase that one no longer hears in a US context, the Chinese economy has entered a "Goldilocks" growth phase where the porridge/congee is neither too hot nor too cold, but is at just the right temperature." In addition, inflation reached an inflection point during the third quarter and is now trending upwar...