China: Weak start to 2018 – Nomura

Analysts at Nomura suggest that their China Composite Leading Index, heat-map and Growth Surprise Index point to a weak start in January, while their China Stress index implies continued stress in the economy.

Key Quotes

“The China Monetary Policy Signal Index suggests that monetary policy may be loosened slightly in February to meet liquidity demand over the coming lunar near year holidays.”

“Does this change our economic view? No. We maintain our forecast for a gradual economic slowdown in 2018, with real GDP growth at 6.5% annually.”