China, Asia's biggest economy and an important driver of sentiment both regionally and globally - is torn between the need to move away from an investment-led growth model and the need to avoid panicking markets. Growth slowed in Q1-2015, mainly due to sluggish investment. Consumption and net exports are propping up growth for now. Economic data was generally weak in Q1, especially in the housing sector; this indicates that developers have limited appetite to boost investment amid rising housing inventories, says Standard Chartered.
Retail sales numbers are also on a weakening trend. While data for May 2015 shows early signs of stabilisation, China's economy is not out of thewoods yet, according to Standard Chartered. China's GDP growth is likely to be 6.9% in 2015 and 6.8 in 2016, whereas, inflation will be 1.6% in 2015 and 2.1% in 2016, forecasts Standard Chartered.
