China - the usual worries

Please click the link below to view Shane Oliver's views on the current state of the economy in China.

Key points raised are:

  • Chinese economic data is off to a soft start this year.
  • There are reasons for optimism that growth this year will still come in around 7%. Monetary policy is easing, the Government is alluding to more stimulus and the threat from the property slump is receding a bit.
  • While a re-run of last year's 50% gain is unlikely, Chinese shares remain attractive.
  • Slower Chinese growth isn't a major threat to Australia.  The main dampener on commodity prices is supply.