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Deloitte survey shows rising Chinese pessimism in face of trade war

A DELOITTE financial consultancy study finds that China's senior business executives believe the GDP growth slowdown will continue into 2019, making it difficult for central planners to increase it beyond six per cent

Deloitte survey shows rising Chinese pessimism in face of trade war

A DELOITTE financial consultancy study finds that China's senior business executives believe the GDP growth slowdown will continue into 2019, making it difficult for central planners to increase it beyond six per cent

27 December 2018 - 19:00

A DELOITTE financial consultancy study finds that China's senior business executives believe the GDP growth slowdown will continue into 2019, making it difficult for central planners to increase it beyond six per cent.

Eighty-two per cent of the 108 business leaders polled said they were more pessimistic. More than half said their business had been impacted by the tariff exchange with the US, and just 38 per cent expect to meet their 2018 revenue targets.



'With no end in sight for tariffs, the Chinese stock markets struggling, and the prospect of pressure from government policies, it looks like [chief financial officers] CFOs are right to be negative,' said William Chou of Deloitte's China chief financial officers programme.



Chief Asia economist at BBVA Research, Xia Le, believes business confidence is at its lowest in a decade, but Beijing is more limited in what it can do to reverse the situation this time round.



'Now, China's policy room is significantly narrower compared to 2008,' said Mr Xia. 'The high debt level of the Chinese corporate sector and associated financial vulnerabilities have made the authorities more cautious about side effects of a massive stimulus.'


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