|(Photo/People's Daily Overseas Edition)|
In the past few weeks, many international investment banks, like Barclays Bank, Deutsche Bank and Credit Suisse, changed their usual passive tune about Chinese economy, and started to raise the forecast for Chinese economy growth. Experts said with the support of recovery of export and “steady growth” policy, the economy will get stable and the objective can be fulfilled in the latter half of the year. But China should remain cool-headed in the face of the optimistic attitude of the investment banks and avoid blindly pursuing the fast development.
Three factors make the banks optimistic about Chinese economy
After releasing a number of positive economic data last week, Deutsche Bank on Thursday raised China's economic growth forecast from 7.6 percent to 7.7 percent in the second half of the year.
In a report released by Credit Suisse this week, it says that China's economy has bottomed out, and raised China’s economic growth forecast for 2013 to 7.6 percent from the previous forecast of 7.4 percent.
First, the steady economic recovery has injected faith in international investors. Deutsche Bank economist Ma Jun said that the rising expectation is based on China's economic changes that have occurred since July, including demand boosted by rising commodity prices and the manufacturing sector rebounded to line ups and downs.
Ma also noted that as the U.S. and European economy would be in better situation in the next year while China's economic growth next year will be faster than this year due to possible growth in exports.
Secondly, Chinese government's strong desire in boosting economy is also a major reason for the expected growth to increase. These policies and measures includes free tax policy for small and micro enterprises, the establishment of the Railway Development Fund, to accelerate investment in railways, environmental protection and energy-saving projects and policies to stabilize the real estate industry.
In addition, the official statement is another important reason for foreign investment banks to be optimistic. Spokesman of China National Bureau of Statistics Sheng Laiyun said recently that there have been positive changes and more obvious signs of stabilization in the Chinese economy, and the external environment has also been improved. China's economic growth this year can fulfill its target and to achieve 7.5 percent of growth.
Edited and translated by Li Xiang, People's Daily Online