Legg Mason: China is poised for further policy action

China is poised to take further policy action, according to Chia-Liang Lian, manager of the $754m (£486m) Legg Mason Western Asset Asian Opportunities fund, who has ruled out a steep drop in growth rates.

According to Lian, worsening macro conditions in Asia could force the Chinese government to unveil more stimulatory measures in the coming weeks. China has already surprised investors this year with two cuts to its benchmark one-year interest rate, which has moved fom 3.5% to 3%. "Slowing growth momentum in China has resulted in policymakers taking a more proactive stance in stimulating growth, in light of the headwinds," he said. "However, we feel a sharp turnaround in Chinese economic growth is unlikely. Rather, we expect policymakers to take small steps on both the fiscal and mo...