China Expected to Execute Moderate Monetary Policy for 2 Yrs

Jing Ulrich, managing director and chairman for China securities and bulk goods at JPMorgan Chase & Co., (NYSE:JPM), said at a press conference that China was likely to execute moderately relaxed monetary policy for two straight years.

The managing director predicted that China was expected to achieve its target of an 8% GDP this year and the consumer price index (CPI) and producer price index (PPI) might fall gently next year. The gross domestic product (GDP) in the first half of this year grew 7.1% in the first half of this year, which is attributed to slumping export. Growth in investment, consumption, and export, three major contributors for GDP, hit 6.2%, 3.8%, and negative 2.9%.

She also forecasted that the Shanghai Stock Exchange (SSE) Composite Index was expected to rally to 4,000 next year, adding that the trim of the Chinese A-share market is attributed to that a good number of companies got listed collectively.

Source: dycj.ynet.com (September 30, 2009)

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