VIEW: Societe Generale have noted that "the...>

CHINA: VIEW: Societe Generale have noted that "the supply-side of the Chinese

economy has achieved a V-shaped recovery, but the recovery in domestic demand,

hampered by income and profit shocks, is lagging behind significantly, despite a

revival in credit-driven infrastructure and property investment. Meanwhile, the

outlook of external demand remains concerning and highly uncertain. Against this

backdrop, hopes for an aggressive demand stimulus were high ahead of the

National People's Congress. The announcements so far have disappointed on the

margin, but it could mean that policymakers are still saving easing room for the

worse. The numeric growth target is abandoned given heightened uncertainties,

but to achieve the now top priority of maintaining employment stability might

still need a growth rate not much below 3%."