China's economy to hold steady in 2016: Report

Updated: 2016-09-30 09:13


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China's economy to hold steady in 2016: Report

A worker operates a cotton spinning machine at a textile mill in Jiujiang, East China's Jiangxi province.[Photo/Xinhua]

BEIJING - China's economic growth is expected to stay "around 6.7 percent" in the fourth quarter of 2016 and for the whole year as major indicators point to stabilization, a report showed Thursday.

Investment, consumption and industrial output all improved in recent months due to government stimulus and recovering upstream industries, according to a report released by a financial research institute with the Bank of China (BOC).

"The downward pressure has been somewhat reduced, but the economy remains in a bottoming out process," said the report.

The country's GDP expanded 6.7 percent in the second quarter of 2016, still the lowest rate since the 2009 global financial crisis but within the government's target range for 2016.

The government has cut interest rates, boosted infrastructure investment and carried out supply-side structural reforms to sustain growth and create new momentum.

Earlier data showed China's rail freight volume returned to growth and industrial profits surged in August, reinforcing a message of economic stabilization.

This week, the Asian Development Bank upgraded its forecast for China's 2016 growth from 6.5 percent to 6.6 percent, and to 6.4 percent growth from 6.3 percent for 2017.

The BOC report suggested authorities balance policies to support growth and prevent asset price bubbles, citing soaring home prices in big cities and surging monetary supply.

It called for a neutral and moderate monetary policy and faster fiscal spending.

In 2016, listed Chinese banks are expected to see net profits grow around 2.6 percent and the non-performing loan ratio rise slightly to around 1.7 percent, according to the report.

The banks' total assets will increase approximately 10 percent and their liabilities will rise 9.5 percent this year, the report said.