Q2 GDP Growth Can Exceed 7% - Chief Economists

GDP growth in China can exceed 7.0% y/y, as the low-base effect from last year and recovering aggregate demand leads to accelerated growth, according to several chief economists interviewed by the Securities Daily. However, the m/m growth trend should be of concern, as this could slow in Q2. The economists called for proactive fiscal policy to implement subsidies and concessions, and for monetary policy to reduce the cost of personal consumer credit, encouraging demand. One expert expects further cuts to the reserve requirement ratio later this year, but the possibility of a loan prime rate decrease was declining.