Moderate recovery likely in Chinese economy

A moderate recovery in Chinese manufacturing is expected in coming quarters. PMI figures of the economy indicate the production is below the actual demand. 

Since the inventory level reduced, the production growth is expected to pick up. Construction activities are also likely to improve with the increase in home sales. 

"We look for Chinese growth to average 6.7% in 2016 followed by 6.6% in 2017. This is broadly in line with the new growth target spelled out in the five-year plan for 2016- 2020, which states that growth should be at least 6.5% over that time frame", says Danske Bank in a research note.