China Economic Analysis Report, No 51, June 2013

Overall demand is still facing downward pressure, and market expectations are not stable, with the macroeconomic index slightly fluctuating at low points. In relatively slow growth, risks are gradually exposed and de-leveraging pressure increases significantly.

How to effectively dissolve risks while keeping the bottom line has become a major challenge for the Chinese economy. The global economy becomes polarizing. Major developed economies start recovery and become stabilized thanks to effective adjustment, while the emerging economies see lower growth due to the restructuring of private sectors. The QE in the US and the slowed growth of emerging economies are major factors influencing market expectations.