Interest Rate Cuts Still Needed In Q4 - Economist

Authorities should cut interest rates to maintain the strong Q3 recovery momentum into Q4, according to Pang Ming, chief economist at Jones Lang LaSalle Greater China. Despite Q3 GDP growth exceeding expectations, authorities still need to address insufficient demand, Pang added. Additionally, the government should reduce financing costs for firms and households and maintain proactive fiscal policy through advancing special-bond issuance and post-investment funds to strengthen demand. Liu Yuanchun, president of Shanghai University of Finance and Economics, said officials had begun to see the property market stabilise, but the large scale of adjustment means investors need to take a long-term view on the sectors' recovery.