Report, “We believe Can Meet Its Challenges”

Although China’s economy is slowing, it is unlikely to experience a hard landing, according to a report released Wednesday by BlackRock (NYSE:BLK), the world’s largest investment manager.

The report said Chinese economy is faced with a series of challenges, but “We believe China can meet its challenges,” highlighting that Chinese policymakers appear aware of the risks, have credible long-term plans and short-term tools to address them.

Helen , head of China equities at BlackRock, said that despite slowing growth in China, recent structural reforms in the economy and capital markets have boosted the performance of China’ s equity markets.

“We are seeing attractive investment opportunities in selected banks, property developers, new energy and small- and medium-sized companies in the H-share market. Companies that benefit from domestic demand and structural reforms will be the winners,” Zhu added.

There are still many underdeveloped rural areas in China which need transformation. China has good infrastructure and continues to invest in it, which is a very important condition for the development of underdeveloped areas.

China has a very high share of in agriculture, which means there is still a lot of space for structural reforms. If you look at economic history, this was a driver of economic growth. He elaborated that people move from the agriculture sector to industry with higher productivity, from sector with lower productivity to sector with higher productivity.

The discussion about middle income trap in China as misleading because of the diversity in China. It is totally misleading to analyze China as 1 big unit.

Some Chinese provinces are bigger than a European country in terms of population, and some provinces in China are already beyond middle income trap while some other provinces are less developed.

Skilled people are needed in order to exploit the opportunities of growth, and China is making efforts to give a big push to its education system.


Paul Ebeling, Editor