Press releases / Investment views

Investment View - ING Investment Management predicts more visibility on Chinese growth prospects

ING IM’s forecast comes on the back of ‘better than expected’ inflation figures that are reducing the need for more policy tightening. The asset manager is confident that the Chinese economy will achieve an average GDP growth rate of around 9.5% this year and will likely be 9% or higher in 2011.

ING IM notes that key indicators have decelerated in recent months and appear to be approaching official target levels. Fixed-asset investment and export growth remain strong at 26% and 48% respectively, industrial production growth is down by 1.3% to 16.5% (17.8% in April) and infrastructure sub-indices are slowing while real-estate continues to thrive.

However, ING IM expects the real-estate tightening measures, introduced in April, to freeze the acceleration in property activity and that infrastructure investment to take the lead once again in the coming quarters. The overall fixed-asset investment growth pace should remain above 20%.

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