Factbox: Major Brokerages Reduce China Growth Forecast Amid Rising Concerns in Property Sector – Reuters

Seven prominent brokerages have reduced their forecasts for China’s economic growth this year, amid deepening concerns about potential contagion from repayment issues at Country Garden, the nation’s largest private property developer.

With the economy experiencing deflation and slower-than-anticipated growth in areas such as retail sales, industrial output, and investment, pressure is mounting on the Chinese government to implement additional stimulus measures.

However, the recent decision to lower the one-year benchmark lending rate by only 10 basis points, which was below expectations, alongside the unchanged five-year lending rate, has failed to impress investors.

Here are the revised GDP growth forecasts from several global banks:

– Morgan Stanley: 4.7% (previously 5%)
– J.P. Morgan: 4.8% (previously 5%)
– Barclays: 4.5% (previously 4.9%)
– Deutsche Bank: 5% (previously 5.3%)
– Nomura: 4.6% (previously 5.1%)
– UBS: 4.8% (previously 5.2%)
– Citigroup: 4.7% (previously 5%)