China: Growth-related indices rebound – Nomura

Analysts at Nomura suggest that their China Composite Leading Index, heat-map and Growth Surprise Index all improved in January-February, but they are cautious on the near-term growth outlook given both domestic and external headwinds.

Key Quotes

“The China Monetary Policy Signal Index rose towards the neutral zone in April; we expect monetary policy to remain neutral in coming months.”

“Does this change our economic view? No. We maintain our forecast for a gradual economic slowdown in 2018, with real GDP growth at 6.5% annually.”