China: Mission Impossible

Posted: March 6, 2014 in Uncategorized
Tags: , ,

Premier Li Keqiang delivered his first government work report at the opening of the National People’s Congress (NPC) meeting last night. The new government promises to speed up reform, manage debt risks, fight pollution, and yet maintain 7.5% economic growth all at the same time. Hard task.

Meanwhile the challenges keep on growing with the first ever bond default in China as a solar company failed to meet its obligation the 7 March- and it seems it will not be saved by the Government. It is not big enough to spark a domino effect, but could be a sign of things to come.And the real funny thing …nobody is talking about it

There are some good outcomes and, for the first time the growth is set, but within a reasonable range.

To achieve all the reforms without compromising the growth target would be impossible in a transparent economy. I do not know if they can cook the books at that level.

Definitely it is a “space to watch” (market catalyst) in 2014. 

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