China Economy Seen Growing 1%-2% In Q2-Daily

The Chinese economy may grow 1% to 2% y/y in Q2, likely bringing H1 growth to around 3%, the Securities Daily reported citing economists. This means the growth in Q3 and Q4 must reach 7% to ensure meeting the annual growth target of 5.5%, the newspaper said citing Qiu Xiaohua, chief economist of Jufeng Investment. Possible incremental policy in H2 can be the issuance of special treasury bonds or front-loading next year’s local government special bonds to help boost infrastructure investment, the newspaper said citing Zhang Jun, chief economist of Morgan Stanley Huaxin Securities. Meanwhile, the central bank can further guide down the Loan Prime Rate and keep liquidity ample to promote credit expansion, the newspaper said citing economists.