China needs to Combat Slowing Growth more Forcefully, According to a Fund Manager.

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The government has so far reduced interest rates and supported the real estate industry with targeted actions.

Economic development will be impacted by rising prices and China’s hot weather, which has forced certain areas to limit electricity, according to Mary Nicola of PineBridge Investments.

Before investors are persuaded that growth would pick up, policymakers in China need to be “more aggressive” in helping the economy, she said.

Before markets are persuaded that growth will pick up, policymakers in China need to be “more aggressive” in supporting the economy, according to one portfolio manager.

Rising prices and the oppressive heat in China, which forced electricity rationing in some areas of the nation, according to Mary Nicola of PineBridge Investments, will have an impact on economic growth.

We believed that the worst was over, particularly with the lockdown in Shanghai, she said on Tuesday’s “Street Signs Asia” episode of CNBC.

However, she added, “possibly… with the concerns about inflation and the looming heatwave, it might mean that policymakers will have to move a little more decisively and enhance some of the stimulus.

The government has so far reduced interest rates and supported the real estate industry with targeted actions.

All of that is good, but in our opinion, there needs to be something… more aggressive for the market to feel a little bit more confident that China’s GDP would go up.

She claimed that despite the measures taken by the authorities, China’s growth hasn’t been as robust as anticipated and that more has to be done.

The important point is that if growth slows, authorities will need to take more prompt and decisive action than what has been seen thus far to relieve some of the strain on growth, she added.

The economy was harmed by Covid regulations, and investment firms such as Goldman Sachs and Nomura reduced China’s growth projections for this year.

The country’s senior decision-makers downplayed the significance of the GDP target of approximately 5.5% in late July, saying instead that they would concentrate on stabilising prices and employment in the second half of the year.

In the second quarter of this year compared to a year prior, China’s GDP increased by 0.4%.

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