Economic Problems Remain Despite Recent Data - Expert

China’s economy still faces strong challenges and needs further policy support to restore confidence despite improvement in August, according to Guan Qingyou, president at the Institute of Financial Studies. In an article published by Yicai, Guan said households still show relative weakness in demand for medium and long-term loans which demonstrates low confidence. China cannot rely on real estate to become a core driver of economic growth and needs to shift focus into new emerging sectors for future prosperity, he said. Monetary policymakers should prioritise working with finance departments to resolve local government debt issues above stimulating the economy with further monetary loosening. (Source: Yicai)