Teng Tai, Vice President and Chief Economist at Minsheng Securities
"China's economy will realize a 'soft landing' in 2011," said Teng Tai, Vice President and Chief Economist at Minsheng Securities. Slower rates of growth and inflation and the acceleration of China's economic transformation will be the three major characteristics of the Chinese economy in 2011, Teng said.
Teng predicted that China's GDP growth rate in 2011 will at least be 1 percentage point lower than that of 2010. Teng believes this will occur because of three factors: increasing inventories for Chinese companies, a loss of momentum in the fixed-asset investment market, and a drop in China's exports. However, this is not considered to be a significant problem. Fan Gang, a member of the Monetary Policy Committee of the People's Bank of China, said "a growth rate of 8 or 9 percent is more helpful for the sustainable and healthy growth of the Chinese economy."