China Economy: Bank of Communications expects slower fixed-asset investment, tightening on housing loans
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Bank of Communications forecasts a 6.7 percent growth for China's economy in 2018 in an outlook report. The bank said exports will grow faster than last year while investment will slow down. It also predicts the current monetary policy will remain unchanged throughout this year. Let's hear the bank's chief economist, Lian Ping.
LIAN PING, CHIEF ECONOMIST BANK OF COMMUNICATIONS "Fixed asset investment growth is likely to slow down, consistent with China's ongoing economic restructuring. Demand for such investments is no longer as strong as before but will grow at a steady pace. We expect it to be 6.5 percent. A large part of banks' lending in the past two years has been used for housing mortgages, which explained its fast growth. We are aware of the risks. Banks will tighten credit for housing loans in 2018 and many of them have already included this in their annual plan. Based on that, the growth will drop significantly. "