China Needs ‘Forceful’ Measures to Hit 5% GDP Target, Funds Say

  • Bond rally may pause as stocks gains delay rate cuts: BNP
  • Investors still want more forceful support measures: abrdn

China’s economic growth target of 5% suggests Beijing will introduce more measures to support the economy.

Photographer: An Ming/Feature China/Future Publishing/Getty Images

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China’s economic growth target of 5% suggests Beijing will introduce more measures to support the economy, with money managers and analysts expecting rate cuts and policies to encourage consumption.

The plan to issue one trillion yuan ($139 billion) of ultra-long special central government bonds is seen as meeting market expectations, analysts said. Yields for longer-dated debt will probably fall further, some said.