Chinese Government Will Opt for Less Growth: Kumada

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July 15 (Bloomberg) -- Mikio Kumada, executive director at LGT Capital Partners, discusses the Chinese government's role in the country's economy as second-quarter GDP growth of 7.5 percent was the slowest in a year. He speaks on Bloomberg Television's "On The Move."

This tightening -- let's call it the regime of occasional punishment -- we have had similar spikes in the short term in china.

It is part of the policy to keep things under control.

I do not think it is anything new.

That is basically about it.

I do not think we are seeing a new development in china recently.

We know that growth has slowed down.

Is the government going to protect that?

What is your concern about china?

The gdp growth figure, i would not put too much money into that.

Chinese officials, economic officials, have suggested that this is a broad orientation number.

The chinese government will continue to slow down.

Officials of a choice between accepting less growth and excepting a healthier economy that will offer less growth.

It is a pattern that has emerged.

Is reflected in the stock market.

There are -- that is one of the few major markets that is down heavily from 2009 levels.

2010 levels.

As the economy comes -- as the economy becomes more consumer oriented, where are the headwinds?

What does that mean for investors?

If you talk about absolute terms for the chinese markets, that means that it is pricing.

This is been ongoing for some years.

The average folks are knowing about this.

This is not new.

In those terms, there is not a downside in the chinese equity markets.

In relative terms, in the next few quarters, i think china and the related asian markets will continue to underperform.

Seven economies, most nobly the united states and japan.

This text has been automatically generated. It may not be 100% accurate.

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