BEIJING, June 14 (Xinhuanet) -- China's macroeconomy can no longer be properly described as "overheating," as the country's economic growth peaks and gradually slows, the latest report from the Morgan Chase Company said Tuesday.
"We'd rather use 'moderate' to describe the growing trend of China's
macroeconomy," Morgan Chase economist Ben Simpfendorfer was quoted as saying by
the Beijing-based First Finance Daily Tuesday.
A decline in the investment of fixed assets has been attributed to
the moderate trend, said the newspaper.
The cement industry, for instance, has seen a reduced production
capacity. Nearly 2,000 of the country's 5,700 manufacturers have either reduced
or halted their production this year amidst a sluggish market demand and rising
production costs spurred by increasing raw material prices, said the report.
According to previous figures released by the National Bureau of
Statistics, the country's combined investment in fixed assets between January
and April decreased 1.9 percentage points to 25.7 percent from the same period
Meanwhile, the growth rate of financial institutes' balance for loans
slowed 2 percentage points from the end of last year to 12.5percent in April.
The deposit balance of companies grew at 13.2 percent, about 3.6 percentage
points less than the end of last year.
Wang Jianzeng, executive deputy secretary-general of the Macroeconomy
Society of the State Development and Reform Commission, warned that the real
concern of China's macroeconomy could be deflation as the year-on-year increases
of consumer product index have been 1.8 percent for two consecutive months since
According to the newspaper, the Morgan Chase report predicted that
China's gross domestic product (GDP) will grow 8.5 percent in the first six
months of this year and slow down to higher than 8 percent at the end of this
Jim Walker, chief economist of the Credit Lyonnais Securities for
Asia-Pacific Market, also projected a slower growth rate for China's economy.
China's GDP will grow 8 to 9 percent this year but slow to between 6
and 7 percent next year, he said to the newspaper.