BIS Shrapnel calls bottom in China

Following the recent upbeat GDP report, BIS Shrapnel’s Building Forecasting Team are suggesting the worst could be over in China. “The details of the Q2 GDP report show that increased investment in property and infrastructure helped the economy grow by 6.7% year-on-year in the three months to June, beating market expectations.” They note, however, that this includes significant investment by State Owned Enterprises. Nonetheless, it seems the bottom is in; “We’ll probably look back on late 2015 as the trough of the Chinese economy.” They expect Chinese growth “to continue to slow at a moderate pace,” and are now forecasting a robust 6.3% GDP growth in 2016. Read the full blog entry here: (VIEW LINK) (Source: BIS Shrapnel)