Here are some highlights of the macro economic and policy updates:
- Services and consumption continued to be notable drivers of economic growth while fixed asset investment growth continued to decline.
- The International Monetary Fund (IMF) has upgraded its economic forecast for China to 6.7% and 6.4% for 2017 and 2018 respectively. This is the third time this year that the IMF has upgraded China’s economic forecast.
- Chinese regulators have expressed concerns about overseas acquisitions by Chinese firms in certain sectors, underlining the government’s new drive to rein in offshore spending by some of the country’s biggest companies.
- China’s ballooning debt, while a concern, is primarily domestic in nature. Yet, it is unlikely to lead to a financial crisis as the Chinese government has significant fiscal buffer to keep things under control.
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