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China to Abandon 6.5% Economic Growth Goal by 2018, SocGen Says

  • Policy makers want reduced risk after debt levels increased
  • ’We think that the arbitrary growth target will be given up’

China is poised to abandon its 6.5 percent growth target sometime in the next two years as leaders push to contain asset bubbles and financial leverage, according to Societe Generale SA.

Signals pointing to acceptance of an expansion below the current objective are encouraging, though authorities haven’t yet confronted the test of a deceleration, which will come in the second half of next year, Yao Wei, chief China economist at SocGen in Paris, said in a note.