Beijing will probably need to step up efforts to stabilize growth but “measured easing, not aggressive easing is likely,” wrote Bo Zhuang, chief China economist for research firm TS Lombard in a note to clients. His “success will be determined neither by responses to the trade war nor by Hong Kong but by management of financial risks,” wrote TS Lombard policy analyst Eleanor Olcott. “To achieve this end, Beijing is accepting slower growth,” she said in the same note.
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