25 Mar 2014
HSBC China PMI hints growth momentum to slow - Nomura
FXStreet (Bali) - According to Zhiwei Zhang, Economist at Nomura, the downbeat flash HSBC China PMI from Monday, despite a favourable seasonal effect, strengthens the case for growth momentum to slow in China.
Key Quotes
"We maintain our view that growth momentum will slow in H1, and policy easing will pick up in Q2. We continue to expect the reserve requirement ratio to be cut by 50bp in Q2 and another 50bp in Q3. Fiscal policy will also likely become expansionary in Q2 to keep GDP growth from dropping below 7% (Nomura: 7.3% in Q1, 7.1% in Q2)."
Key Quotes
"We maintain our view that growth momentum will slow in H1, and policy easing will pick up in Q2. We continue to expect the reserve requirement ratio to be cut by 50bp in Q2 and another 50bp in Q3. Fiscal policy will also likely become expansionary in Q2 to keep GDP growth from dropping below 7% (Nomura: 7.3% in Q1, 7.1% in Q2)."