Nomura Economist Zhiwei Zhang: "We Have Argued That China's Recovery is Fundamentally Unhealthy"

Hello folks, let's talk about China recovery, according to Nomura economist Zhiwei Zhang, China recovery is over, he said, "We maintain our view that the recovery ended in Q3 and that GDP growth will slow to 7.5% y-o-y in Q4 and 6.9% in 2014. We see downside risks to our Q4 GDP forecast"

"We have argued that China's recovery is fundamentally unhealthy , as it has been mainly driven by heavy industry and stands in contrast to the principles recently espounded by both President Xi Jinping and Premier Li Keqiang – that a lower rate of GDP growth can be tolerated to ensure a better quality of growth in the future. We expect the government to cut its growth target for 2014 to 7% in December in an effort to contain financial risks such as local government debt risk