China's Modest Credit Stimulus Should End Talk Of A Hard Landing

China’s Modest Credit Stimulus Should End Talk Of A Hard Landing  by Andy Rothman, Matthews Asia

A modest credit stimulus and a housing market rebound led to a pick-up in investment and industrial activity during the first quarter of the year, and while that should end talk of a hard landing, the gradual deceleration of China’s economic growth will continue.  Growth is driven increasingly by consumption and services as rebalancing proceeds, and that part of the economy—the largest part—continues to offer opportunities for investors.

A Modest Credit Stimulus

Concerned that the industrial and investment parts of the economy were slowing too much, the Chinese government delivered a modest credit stimulus in recent months by boosting bond issuance targeted at public...