US investor bullish about China’s economy

CNC

Investors are feeling bullish about the world’s second largest economy, as China maps out a guideline plan for the next 5 years.

Economy Report has an expert confident about the country’s economic growth.

Chinese premier Li Keqiang delivered a speech at the opening meeting of the national legislature annual session on Saturday.

He sets this year’s economic growth target at between 6.5 and 7 percent, as well as the average annual growth rate for the next five years at above 6.5 percent.

The CEO of Kamsky Associates, Inc. (KAI), a strategic advisory firm, is happy to see the growth.

SOUNDBITE: VIRGINIA KAMSKY, Chairman & CEO, Kamsky Associates, Inc.

“I think it is stronger than many so-called experts had suspected. 6.5 to 7 percent GDP growth is robust growth. It is one of the strongest levels of growth anywhere in the world.”

KAI was one of the first approved foreign advisory firms in China. It owns offices in both Beijing and New York.

Kamsky feels confident with China going into the next five years, despite the challenges the country face in terms of maintaining a sustainable growth.

SOUNDBITE: VIRGINIA KAMSKY, Chairman & CEO, Kamsky Associates, Inc.

“China is extremely resourceful despite headwinds, despite problems we have seen with the market, with the RMB. I have confidence; I would say that I remain cautiously optimistic that this will in fact be a good year. You just have to look at history, if you look at the Asian financial crisis, China was able to insulate itself extremely well, they have some very capable economic minds inside leadership circles.”

China’s economy experiences different phases of its development cycle. Via complex reforms, it is now shifting its focus to consumption and service industries from polluting heavy industries and manufacturing.

A natural result of the transition is lower yet sustainable and balanced growth, and it continues to create development opportunities for the world.

SOUNDBITE: VIRGINIA KAMSKY, Chairman & CEO, Kamsky Associates, Inc.

“You are going to be looking at China wanting to move up the scale in terms of technology, innovation is very important. A consumption-driven model by definition means there is going to be opportunities in the service sector, so what do I mean by that, financial sectors, there has been talk about that sector opening up for foreigners.”

Voices concerning China’s economy like “hard landing” and “collapse” were often heard, but they have all been dumb in front of the solid economic performance.

According official data from the Ministry of Commerce, foreign investment in China reached a record 126 billion U.S. dollars in 2015.

Nearly 24,000 foreign-funded enterprises were founded in the first 11 months last year, 11 percent more than that in the same period of 2014.

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