China Leaders Tested on Growth Resolve After Slowdown: Economy – Bloomberg 06-09-13

Salient to Investors:

Shen Jianguang at Mizuho Securities Asia said the May data will force China and the central bank to rethink growth and inflation as it seems they were too optimistic about growth and too concerned about inflation, and will be a test to see if they are determined to reform. Shen said the data increase the odds of an interest-rate cut, while the PPI’s biggest drop since September makes inflation-adjusted borrowing costs too high for most businesses.

Zhang Zhiwei at Nomura said the risks of policy easing will rise as we near the important Communist Party meeting in October.

Lu Ting at Bank of America expects no new stimulus measures and no interest-rate cuts.

Read the full article at http://www.bloomberg.com/news/2013-06-09/china-s-leaders-face-test-of-growth-resolve-after-may-slowdown.html

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