China Premier: We are back on trackMads Koefoed
Premier Li Keqiang says China's economy is going through a "crucial" stage of restructuring. His words will be welcomed by investors, as it gives hopes that the world’s second largest economy is back on track.
Saxo Bank’s Mads Koefoed thinks China is now starting to address the two key imbalances in its economy; relying too much on investment and exports.
The government has been undertaking structural reforms, such as liberalising interest rates and allowing its currency to strengthen. Mads explains that China needs to shift away from investments, and focus more on consumer spending.
China is still expected to hit its growth target of 7.5% this year. Whilst Mads thinks this is possible short term, he warns that if it doesn't step away from its current growth model, this will drop to about 5% a year.
Li Keqiang, who took office this year, gave a speech to government leaders at the World Economic Forum in the northeastern port city of Dalian.