China GDP to Dip Below 7 Percent Amid Pain Of Liberalization: SocGen

According to Wei Yao of Societe Generale, in light of the lack of improvement in recent data as well as the harsh interbank liquidity squeeze, they believe it necessary to further revise down growth forecasts for China, from 7.6 percent to 7.4 percent for 2013 and from 7.2 percent to 6.9 percent for 2014. Furthermore, the latest move towards further interest rate liberalization provides another clear signal that the new leadership is intent on fast-tracking financial market liberalization. Although such a reform should be beneficial for China’s long-term development, risk and pain could be set to increase in the near term.  Also see China Is On The Verge…