"China’s slowdown may deepen as policy makers unwind the excesses of a record credit boom while only gradually increasing stimulus, leaving 2012 growth at the weakest in 13 years...
Pimco sees Chinese growth this year in the “mid-7 percent range,” a pace unseen since 1999.
A more measured pace of stimulus now than the record fiscal package and lending boom of 2009 may help reduce the risk of an eventual credit bust.
China’s central bank has so far held off on lowering interest rates, opting May 12 to execute the third reduction in banks’ reserve requirements since November.
...“These monetary policies are reactive, very different from what some analysts had been expecting -- something much more aggressive and pre- emptive.”
...China’s growth rate slowed to 8.1 percent in the first quarter from 11.9 percent two years ago.
During the global financial crisis, the weakest quarterly expansion was 6.2 percent in the first quarter of 2009, compared with a full-year rate of 9.2 percent.
...reports on May 11 showed China’s industrial production and retail sales grew less than forecast.
...The government has left benchmark rates unchanged since an increase in July.
...51job Inc., a Shanghai-based recruiting service provider, and 7 Days Group Holdings Ltd., a hotel operator based in Guangzhou, last week pared sales forecasts."
Bloomberg News - May 14, 2012
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